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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.

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Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).

Summary and timeline

Looking for the synopsis? Our IFRS 2 summary and timeline features information on current proposals and a timeline of IASB updates.

Recent amendments

All amendments issued up to and including the publication date of 1 January 2023 are included within the IFRS Foundation’s latest version of the issued standard: 2023 Issued Standard – IFRS 2. Issued amendments may, therefore, have a mandatory effective date that is later than 1 January 2023 – see below for details.

Any amendments issued after 1 January 2023 will not be included in the IFRS Foundation’s 2023 Issued Standards but will be listed below and identified as such.

See the Financial Reporting Faculty’s annual IFRS factsheets for a more detailed discussion of recent IFRS amendments.

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 – FRS 101

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 for FRS 101 preparers

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

  • Disclosure exemptions for FRS 101 preparers

    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.

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In-depth analysis on a range of accounting issues.

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