Global Standards for the world economy

Tuesday 23 May 2017

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Share-based payment (IFRS 2)

IASB meeting summaries and observer notes

 IASB April 2009


The Board considered several issues arising from drafting a standard resulting from the exposure draft Group Cash-settled Share-based Payment Transactions.

The Board decided tentatively that: 

  • replacing existing paragraph 3 to state clearly the intended scope of IFRS 2 Share-based Payment does not change the requirements with respect to ‘shareholder transfers’. 
  • the final amendments should explicitly include transactions of a settling entity in the scope of IFRS 2 only in a group share-based payment transaction. 
  • the final amendments should exclude a transactions of a settling group entity from the revised defined terms of ‘equity-settled’ and ‘cash-settled’ share-based payment transactions. 
  • the amended definition of ‘share-based payment arrangement’ should not refer to the goods or services that the suppliers provide. 
  • in the disclosure requirements in IFRS 2, the term ‘share-based payment transaction’ should replace ‘share-based payment arrangement’ 
  • the accounting for transfers of employees among group entities for all awards that are accounted for as equity-settled should remain the same as required by IFRIC 11 IFRS 2 -Group and Treasury Share Transactions.
  • the final revised amendments do not require re-exposure.
  • the effective date will be 1 January 2010, with retrospective application subject to the transitional provisions of IFRS 2. If the information necessary for that retrospective application is not available, an entity’s separate financial statements would use the amounts previously recognised in the group’s consolidated financial statements.

Date: 4/24/2009