Share-based Payment

In February 2004 the International Accounting Standards Board (Board) issued IFRS 2 Share-based Payment. The Board amended IFRS 2 to clarify its scope in January 2008 and to incorporate the guidance contained in two related Interpretations (IFRIC 8 Scope of IFRS 2 and IFRIC 11 IFRS 2—Group and Treasury Share Transactions) in June 2009.

In June 2016 the Board issued Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2). This amended IFRS 2 to clarify the accounting for (a) the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; (b) share-based payment transactions with a net settlement feature for withholding tax obligations; and (c) 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.

Other Standards have made minor consequential amendments to IFRS 2. They include IFRS 10 Consolidated Financial Statements (issued May 2011), IFRS 11 Joint Arrangements (issued May 2011), IFRS 13 Fair Value Measurement (issued May 2011), Annual Improvements to IFRSs 2010–2012 Cycle (issued December 2013), IFRS 9 Financial Instruments (issued July 2014), Amendments to References to the Conceptual Framework in IFRS Standards (issued March 2018) and Definition of Material (Amendments to IAS 1 and IAS 8) (issued October 2018)

CONTENTS

from paragraph

INTERNATIONAL FINANCIAL REPORTING STANDARD 2 SHARE-BASED PAYMENT

OBJECTIVE 1

SCOPE 2

RECOGNITION 7

EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS 10

Overview 10

Transactions in which services are received 14

Transactions measured by reference to the fair value of the equity instruments granted 16

Modifications to the terms and conditions on which equity instruments were granted, including cancellations and settlements 26

CASH-SETTLED SHARE-BASED PAYMENT TRANSACTIONS 30

Treatment of vesting and non-vesting conditions 33A

SHARE-BASED PAYMENT TRANSACTIONS WITH A NET SETTLEMENT FEATURE FOR WITHHOLDING TAX OBLIGATIONS 33E

SHARE-BASED PAYMENT TRANSACTIONS WITH CASH ALTERNATIVES 34

Share-based payment transactions in which the terms of the arrangement provide the counterparty with a choice of settlement 35

Share-based payment transactions in which the terms of the arrangement provide the entity with a choice of settlement 41

SHARE-BASED PAYMENT TRANSACTIONS AMONG GROUP ENTITIES (2009 AMENDMENTS) 43A

DISCLOSURES 44

TRANSITIONAL PROVISIONS 53

EFFECTIVE DATE 60

WITHDRAWAL OF INTERPRETATIONS 64

APPENDICES

A Defined terms

B Application guidance

C Amendments to other IFRSs

APPROVAL BY THE BOARD OF IFRS 2 ISSUED IN FEBRUARY 2004

APPROVAL BY THE BOARD OF AMENDMENTS TO IFRS 2:

Vesting Conditions and Cancellations issued in January 2008

Group Cash-settled Share-based Payment Transactions issued in June 2009

Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2) issued in June 2016

FOR THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITION

• IMPLEMENTATION GUIDANCE
• TABLE OF CONCORDANCE

FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION

• BASIS FOR CONCLUSIONS

International Financial Reporting Standard 2 Share-based Payment (IFRS 2) is set out in paragraphs 1–64 and Appendices A–C. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in the Standard. Definitions of other terms are given in the Glossary for International Financial Reporting Standards. IFRS 2 should be read in the context of its objective and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.