On 2 February 2006 the International Accounting Standards Board (IASB) published for public comment an Exposure Draft of proposals to amend IFRS 2 Share-based Payment.
The proposed amendment deals with two matters.
- It proposes that vesting conditions should be restricted to service conditions and performance conditions. Vesting conditions are the conditions that an individual or an organisation must satisfy to receive an entity’s shares under a share-based payment arrangement.
- The amendment also proposes that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment.
The Exposure Draft was open for comment until 2 June 2006.