EFRAG: Draft endorsement advice on Classification and Measurement of Share-based Payment Transactions - Amendments to IFRS 2

07 October 2016

EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement.

EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Classification and Measurement of Share-based Payment Transactions - Amendments to IFRS 2 ('the Amendments').

The objective of the Amendments is to provide guidance on three issues reported by the IFRS Interpretations Committee regarding:

• The effects of vesting conditions on the measurement of a cash-settled share-based payment
• The classification of share-based payment transactions with net settlement features for withholding tax obligations
• The accounting for 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

The Amendments become effective for annual periods beginning on or after 1 January 2018, with earlier application permitted.

EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.

Comments are requested by 10 November 2016. 

Full press release

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