What are the settlement enterprises and service receiving enterprises in group share payment?

Group share payment may involve employees of both the parent company and subsidiaries, so the settlement enterprise is generally the parent company, while the enterprise receiving the service may be the subsidiary company, or both.

In the process of group share payment, the settlement enterprise is the investor of the service enterprise. If the settlement enterprise settles with its own equity instruments, it shall debit the long-term equity investment account and credit the capital reserve (other capital reserve) account according to the fair value of the equity instruments on the grant date on each balance sheet date.

Extended data:

Characteristics of share-based payment:

1. Share-based payment is a transaction between an enterprise and its employees or other parties.

2. Share-based payment is a transaction aimed at obtaining services from employees or other parties.

3. The consideration or pricing of share-based payment transactions is closely related to the future value of the enterprise's own equity instruments.

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