Group settled stock compensation

If a subsidiary issues stock options of parent company to its employees and contracts to reimburse  the vest date value of the parent's shares to the parent, then should the subsidiary account for the transaction as equity settled or cash settled? IFRIC 11 (amended IFRS 2) is silent on such type of arrangement. In my opinion this should be accounted by the subsidiary as equity settled with fair value changes in liability recognised in a seperate line (ie. not as employee compensation which should be recognised at grant date fair value).