Under IFRS 2 and AASB 2 the fair value of share options has to be classified as:

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Under IFRS 2 and AASB 2, the fair value of share options granted to employees has to be recognized as an expense in the income statement. This means that the cost of providing the share options is spread out over the vesting period of the options, which is usually the same as the period over which the employee provides services to the company. Therefore, the correct classification for the fair value of share options is as an expense.

Under IFRS 2 and AASB 2 the Fair Value of Share