IFRS 2 Share Based payments
IFRS 2 Share Based payments
IFRS 2 requires an entity to recognise share-based payment transactions in its financial statements. Equity-settled share-based payment transactions are generally those in which shares, share options or other equity instruments are granted to employees or other parties in return for goods or services.
Cash-settled share-based payment transactions are generally those to be settled in cash or other assets.They are share-based because the payment amount is based on the price of the entity's shares.
The share-based payment transaction is recognised when the entity obtains the goods or services.Goods or services received are recognised as assets or expenses as appropriate.
The transaction is recognised as equity (if equity-settled) or as a liability (if cash-settled).
Equity-settled share-based payment transactions are measured at the fair value of the goods or services received. If the fair value of the goods or services cannot be estimated reliably, the fair value of the equity instruments at grant date is used.
* In the case of employee and similar services it is difficult to estimate reliably the fair value of additional benefits received by the entity, so the fair value of the equity instruments measured at grant date is used instead.
* In other cases there is a rebuttable presumption that the fair value of the goods or services received can be estimated reliably. If not, the fair value of the equity instruments is used instead. If the identifiable consideration received is less than the fair value of the equity instruments granted or the liability incurred, the unidentifiable goods or services are measured by reference to the difference between the fair value of the equity instruments granted (or liability incurred) and the fair value of the goods or services received at grant date. In other cases, the fair value is measured at the date the entity obtains the goods or services.
Cash-settled share-based payments are measured at the fair value of the liability. The liability is remeasured at the end of the reporting period and at the date of settlement.Changes in value are recognised in profit or loss.
In some cases, the entity or the other party may choose whether the transaction is settled in cash or by issuing equity instruments.The accounting treatment depends on whether the entity or the counterparty has the choice. Online Shopping : How To Make Your Shopping Enjoyable? Where To Buy The Best Natural Bath Oil Project Payday Will Be A Life Saver For You Do I Have To Pay To Post Ads? How to buy the best suiting binocular for you? BACS = payroll the easy way Buy a Good Knife Set - Anolon Knives Buy Boniva to Say Adieu to Osteoporosis Buy FFXIV Gil Buy Reclast to Get Respite from Postmenopausal Osteoporosis Payday Advance No Teletrack- No Need To Wait For Your Payday What You Need To Know Before You Buy A Lhasa Apso Dog Shopping Online for Contacts: Security and Privacy