The amendments respond to requests the IASB received to clarify how an individual subsidiary in a group should account for some share-based payment arrangements in its own financial statements.
Press release
The International Accounting Standards Board (IASB) issued amendments to
IFRS 2 Share-based Payment that clarify the accounting for group cash-settled share-based payment transactions.
The
IASB revised its initial proposals in the light of comments received. The amendments issued clarify:
· the scope of
IFRS 2. An entity that receives goods or services in a share-based payment arrangement must account for those goods or services no matter which entity in the group settles the transaction, and no matter whether the transaction is settled in shares or cash.
· the interaction of
IFRS 2 and other standards. The Board clarified that in
IFRS 2 a ‘group’ has the same meaning as in
IAS 27
Consolidated and Separate Financial Statements, that is, it includes only a parent and its subsidiaries.
· The accounting for some group and treasury share-based payment transactions. An entity must measure the goods or services it received as either an equity-settled or a cash-settled share-based payment transaction assessed from its own perspective, which may not always be the same as the amount recognized by the consolidated group.
© IASB - International Accounting Standards Board
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