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Chapter19: Share-Based Compensation and Earnings Per Share

British Airways Case

British Airways, Plc. (BA), a U.K. company, prepares its financial statements according to International Financial Reporting Standards. BA's annual report for the year ended March 31, 2009, which includes financial statements and disclosure notes, is included with all new textbooks and can be found at www.britishairways.com. When answering questions, focus on BA's “Group” financial information (which is equivalent to “Consolidated” under U.S. GAAP).

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Required:

What is the amount that BA reports in its income statement for its stock options and other share-based compensation plans for the year ended March 31, 2009? [Hint: See Note 34: “Share options.”] Are BA’s share options cliff vesting or graded vesting? How does accounting differ between U.S. GAAP and IFRS for graded-vesting plans?

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