The International Accounting Standards Board (the Board) today issued amendments to IFRS 2 Share-based Payment, clarifying how to account for certain types of share-based payment transactions.
The amendments, which were developed through the IFRS Interpretations Committee, provide requirements on the accounting for:
- the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments;
- share-based payment transactions with a net settlement feature for withholding tax obligations; and
- a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled.
Companies are required to apply the amendments for annual periods beginning on or after 1 January 2018. Earlier application is permitted.
Further information about the amendments—Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)—can be accessed here.