IFRS 2 Share-based Payment—length of the performance target with respect to the period of service
The IASB discussed a sweep issue that had been raised during the drafting of the final amendment to IFRS 2 Share-based Payment regarding the length of the performance target with respect to the period of service within the proposed definition of performance condition. This issue had been included as part of the proposed amendment to the definition of vesting conditions, which was presented to the IASB in February 2013 as part of the Annual Improvements to IFRSs 2010-2012 Cycle.
The IASB tentatively decided to allow the start of the assessment period for the performance target to precede the service period provided that:
a. the assessment period for the performance target substantially coincides with the service period; and
b. the assessment period for the performance target does not extend beyond the end of the service period.
All IASB members tentatively agreed to finalise the proposed amendment on this basis.
The IASB plans to finalise the amendment to IFRS 2 as part of the Annual Improvements to IFRSs 2010-2012 Cycle, which will be published in the fourth quarter of 2013.