Global Standards for the world economy

Thursday 27 April 2017

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IASB meeting summaries and observer notes

 IASB January 2007


The Board continued its deliberations on the proposed Amendments to IFRS 2 Share-based Payment—Vesting Conditions and Cancellations. The Board tentatively decided to change the wording of the proposed Amendment to clarify the following issues, in the light of comments received on the review of the pre-ballot draft:

  • the accounting treatment of the liability component on cancellation of a share-based payment arrangement
  • the definition of vesting conditions
  • that performance conditions impute an explicit or implicit employee service requirement.

In addition, the Board asked the staff to include a flowchart in the Implementation Guidance to help in identifying service conditions, performance conditions and non-vesting conditions. The Board also emphasised the importance of clarifying that performance conditions impute service requirements, and decided that this should be dealt with in the Standard, rather than the Basis for Conclusions.

The Board also asked the staff to determine whether the revised proposed changes would create divergence from SFAS 123. If any significant issues arise the Board will discuss the issues at a future Board meeting.

Date: 1/25/2007