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The Interpretations Committee decided to recommend to the IASB that it should amend IFRS 2 in a narrow-scope amendment project

 13 March 2013

In the July 2012 meeting, the Interpretations Committee received an update on the issues that have been referred to the IASB but have not yet been addressed. The Interpretations Committee asked the staff to update the analysis and perform further outreach on an issue of the classification of a share-based payment transaction with a net settlement feature in which the entity withholds a specified portion of the equity instruments that would otherwise be issued to the counterparty upon exercise (or vesting) of the share-based payment award. The equity instruments are withheld by the entity in return for settling the counterparty’s tax obligation that is associated with the share-based payment. The request received by the Interpretations Committee asked whether the portion of the share-based payment that is withheld should be classified as cash-settled or equity-settled, if the entire award would otherwise be classified as equity-settled without the net settlement feature.

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