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Friday 24 October 2014

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IFRS Interpretations Committee

Share‑based Payment: Price difference between the institutional offer price and the retail offer price for shares in an initial public offering


 Agenda decision

IFRS 2 Share-based Payment: Price difference between the institutional offer price and the retail offer price for shares in an initial public offering

The IFRS Interpretations Committee received a request to clarify how an entity should account for a price difference between the institutional offer price and the retail offer price for shares issued in an initial public offering (IPO). The submitter states that the final retail offer price could be different from the institutional offer price because of:

  1. an intentional difference arising from a discount given to retail investors as indicated in the prospectus; or
  2. an unintentional difference arising from the book-building process.

Project stages

Deliberations

Expected completion date: July 2014