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IFRS 2 Share-based payment

IFRS 2 Share-based Payment provides guidance on the accounting treatment of equity-settled and cash-settled share-based payments. The standard was published in February 2004 and is effective from 1 January 2005.

Full text standard

Unaccompanied version of IFRS 2
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

IFRS 2 summary and timeline

Looking for the synopsis? Our IFRS 2 summary and timeline are now on a separate page, featuring information on current proposals and a timeline of IASB updates.

Which version of the standard?

Financial Reporting Faculty members have unlimited online access to the consolidated edition of IFRS and amendments through the IASB's eIFRS service. Please log into eIFRS to access electronic versions of the standards. Or find out more about how to join the faculty.

The ICAEW Library also offers members and students access to the print versions of the latest IFRS Blue and Red Books. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com


Related IFRIC interpretations

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
Addresses the accounting by an entity which issues equity instruments in order to settle, in full or part, a financial liability.


UK reduced disclosures

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.

Amendments to the standard

There are no amendments to IFRS 2 in order to comply with the Companies Act and related Regulations.

Disclosure exemptions

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:

  • For a subsidiary company to arrangements involving the equity instruments of another group entity;
  • For an ultimate parent to arrangements involving its own equity instruments provided that its separate financial statements are provided alongside the group consolidated financial statements.

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.


ICAEW guides and support

Annual factsheets

These exclusive factsheets, produced annually by the Financial Reporting Faculty for its members, highlight all new and modified requirements for preparers of IFRS accounts. Each annual edition focuses primarily on new requirements with mandatory application for preparers with periods beginning on or after 1 January of that year.

2018 IFRS accounts 🔒
Financial Reporting Faculty, 6 August 2018

2017 IFRS Accounts 🔒
Financial Reporting Faculty, 30 April 2018

2016 IFRS Accounts 🔒
Financial Reporting Faculty, 30 January 2017


eBooks

Access to eBooks is only available to ICAEW members and ACA students – please log in to view these titles.

IFRS 2018: Interpretation and application of IFRS standards 🔒
PKF (2018)
This Wiley guide has been fully updated to help practitioners apply and comply with the latest international financial reporting standards. It provides detailed guidance along with illustrative examples. The chapters on shareholders' equity and share-based payment cover:

  • Shareholders' equity
  • Recognition and measurement
  • Entity-settled share-based payments
  • Cash-settled share-based payments
  • Share-based payment transactions with cash alternatives
  • Share-based transactions among group entities
  • Disclosure
  • Examples of financial statement disclosures
  • Employee share options valuation example

If you have any difficulties using these eBooks, please see our Help and support advice or contact library@icaew.com.


Example accounts

IFRS model accounts and disclosure checklists
Online disclosure checklists, general IFRS illustrative statements and compliance questionnaires collected by the ICAEW Library.

Company Reporting (Croner-i)

The ICAEW Library can provide examples of real-life company reports to help keep you up-to-date with reporting practices and benchmark your financial reporting compliance. Company Reporting analyses current IFRS disclosures from public companies, organised by industry sector. It also provides detailed monthly Common Practice reports on specific issues.

Contact us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com to get any documents from Company Reporting.


External resources

Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.

IASB issues amendment to IFRS 2
PwC In Brief bulletin published in June 2016 giving an overview of the changes to IFRS 2. It discusses the measurement of cash-settled awards, modification of cash-settled awards, awards with net settlement features and who will be affected by the amendments.

Accounting for share-based payments under IFRS 2: The essential guide
Guide produced by EY in April 2015 giving an overview of IFRS 2 with examples and a glossary of terms.

A practical guide to share-based payments
Guide from PwC, updated in February 2011, which includes many practical examples.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest IFRS handbooks and manuals. You can browse all our books on IFRS 2 and employee share schemes or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

International GAAP 2019
EY, Wiley, 2019
Comprehensive reference guide to interpreting and implementing IFRS, featuring detailed analysis of technical accounting issues accompanied by worked examples and illustrations taken from the actual financial statements of companies that report under IFRS.
Request this book

Manual of accounting: IFRS for the UK 2019
PwC, Tolley, 2018
Practical guidance on the standards and the accounting requirements of UK law applicable to UK users of IFRS. This manual was published in November 2018 and includes key updates from amendments, annual improvements and the revised conceptual framework issued in March 2018.
Request this book

Insights into IFRS 2018–19
KPMG, Thomson Reuters, 2018
Manual providing practical guidance with an emphasis on the real-life application of IFRS, with examples based on actual questions that have arisen in practice around the world. This book deals with standards issued by the IASB as at 1 August 2018.
Request this book

iGAAP 2018: A guide to IFRS reporting (Volume A)
Deloitte, Croner-i, 2018
Practical and comprehensive guidance for entities currently reporting under IFRS and those considering whether to move to IFRS in the near future. This manual deals with standards issued by the IASB as at 1 September 2017.
Request this book

GAAP 2018: UK reporting - IFRSs (Volume C)
Deloitte, Croner-i, 2018
Comprehensive manual explaining how to apply IFRS, focusing on practical implementation issues with commentary and analysis of issues specific to UK companies. This volume deals with standards issued by the IASB as at 1 September 2017.
Request this book

Wiley IFRS 2018: Interpretation and application of IFRS standards
PKF, Wiley, 2018
Reference manual providing full coverage of the latest standards and thorough guidance for implementation, featuring practical tools and insight from a practitioner's perspective.
Request this book

Articles

The ICAEW Library subscribes to over 160 current journals and magazines, as well as offering access to 1,800 key UK and international business, management and trade titles online. You can browse articles on IFRS 2 and employee share schemes or request any of the selected articles below by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

Expensing of share-based payments and its impact on large UK companies
Radha K. Shiwakoti and Brian A. Rutherford, British Accounting Review, Vol. 42 No. 4, December 2010
This article investigates the impact of one of the most strongly-opposed accounting standards of recent years affecting UK companies, IFRS 2/FRS 20.

Find out more about how you can borrow books from the ICAEW Library or get articles and documents sent to you by email, post or fax.


Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your IFRS questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250.

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