Financial Report - Compensation Cost Settings

Financial Report - Compensation Cost Settings

You can configure the compensation cost settings that will drive the logic for your reports in the Compensation Cost Settings page.

To configure Compensation Cost Settings:

Step 1: Go to the Compensation Cost Settings page.

Step 2: Choose the First Month of the Financial Year for your organization.

Step 3: Select your preferred Reporting Period Frequency:

• Yearly
• Quarterly
• Monthly

Step 4: Choose a Valuation Method:

• Fair Value
• Intrinsic Value with Fair Value disclosure

Step 5: Select an Amortisation Method:

• Front Loading (IFRS 2-compliant “graded” methodology)
• Graded Straight Line
• Straight Line

Step 6: Set your preferred Cancellation Settings for true ups:

• On Cancellation Date
• At Vesting

Step 7: Choose the Calculation Period Basis:

• Days (for granular, daily-level expense reporting)
• Months (for simplified monthly reporting)

Step 8: If using the daily method, decide whether to include the vesting date when calculating the award life for expensing.

Step 9: Define the Exercise Period for remaining contractual life:

• If defined, it will be used directly.
• If perpetual or event-based, a default 20-year period will be used (adjustable based on historical assumptions).

Step 10: Click Save Settings to apply your changes.