IFRS 2 Share-based Payment provides guidance on the accounting treatment of equity-settled and cash-settled share-based payments.
Published February 2004. Effective 1 January 2005.
*UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.
IFRS 2 requires share-based payments to be recognised in the financial statements at fair value, based on the value of the entity’s shares or the value of the goods and services received.
The scope of IFRS 2 includes employee share options, transactions in which shares or other equity instruments are issued in return for goods and services, and transactions where the payment amount is based the on the price of the entity’s shares.
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*Not EU endorsed as at 7 June 2017. Read more on EU Endorsement.
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.
There are no amendments to IFRS 2 in order to comply with the Companies Act and related Regulations.
FRS 101 paragraph 8(a) states that a qualifying entity is exempt from most of the disclosure requirements of IFRS 2. The remaining disclosure requirements require a description of the schemes and details about options exercised in the year and options outstanding at the year-end.
This exemption applies:
Equivalent disclosures must be made in the consolidated financial statements of the group in which the entity is consolidated.
IFRS 2 paragraphs for which exemption is available: 45(b) and 46-52.
This page was last updated 7 June 2017
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