At the October 2013 meeting, the staff informed the IASB about the US Emerging Issues Task Force's (EITF) recent consensus that a performance target that is achieved after the requisite service period is a performance condition. The staff also informed the IASB that this decision by the EITF was inconsistent with the IASB's proposed definition of a ‘performance condition’ included in the Annual Improvements 2010–2012 Cycle. This is because, using the IASB’s proposed definition of ‘performance condition’, performance targets that are achieved after the requisite service period would not be accounted for as performance conditions, and would be accounted for instead as non-vesting conditions.
At the November 2013 meeting the IASB decided to confirm its proposal that the period over which the performance target is achieved should not extend beyond the service period and decided to finalise the amendment to IFRS 2 through the Annual Improvements 2010–2012 Cycle.
All IASB members agreed.
The IASB plans to finalise the amendments included in the Annual Improvements 2010–2012 Cycle in December 2013.