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FRS 102: Share-based payment under UK GAAP

FRS 102 Section 26 Share-based Payment sets out the requirements that apply to equity-settled and cash-settled share-based payment transactions. Examples of share-based payment arrangements include share options or share appreciation rights granted to suppliers or employees of an entity in return for goods or services.

The standard

The requirements regarding share-based payments are set out as part of FRS 102. However, individual sections of the standard should not be looked at in isolation as other parts may be relevant.

FRS 102 is regularly updated and amended by the Financial Reporting Council (FRC). For the full text of FRS 102, guidance on which version of the standard to apply and notes on recent amendments, see our main FRS 102 page.

ICAEW guides and support

Helpsheets and factsheets

Share for share exchanges

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12-08-2022

Technical helpsheet issued to help ICAEW members to understand the company law and financial reporting implications of a share for share exchange.

Accounting for share options under FRS 102

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11-02-2020

Technical helpsheet to issued to help ICAEW members account for the issue of share options to employees in exchange for their service under FRS 102.

Preference shares - equity or liability under FRS 102?

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01-12-2015

Technical helpsheet to help ICAEW members understand how to account for preference shares in the financial statements of both the holder and the issuer under FRS 102.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.

Share-based Payments

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Steve Collings Small Company Financial Reporting August 2022

A chapter on share-based payments within the small companies' financial reporting framework and the micro-entities legislation, written by a specialist on small company reporting issues. FRS 102 Section 26 and the recognition and measurement of share-based payments are discussed, along with helpful real-life examples.

Share-based Payment

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Steve Collings Financial Reporting for Unlisted Companies in the UK and Republic of Ireland 2021

A chapter on financial reporting of share-based payments under UK GAAP. Sections include: Recognition; Vesting conditions; Measurement principles; Modifying the terms and conditions; Share-based payment transactions with cash alternatives; Group plans; Government-mandated plans; Disclosure requirements. This practical manual has been comprehensively updated to reflect changes issued by the Financial Reporting Council (FRC) since 2019.

Share-based payments

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Julia Penny Accounting Principles for Tax Purposes 2021

A full chapter on accounting for share-based payments under FRS 102, Section 26, in this accessible introduction to the accounting rules relevant to tax computations in the UK. Written for tax practitioners who wish to gain a better understanding of accounting rules in the UK.

Share-based Payment

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Steve Collings Practical Guide to UK Accounting and Auditing Standards 2021

A chapter on share-based payments - part of a one-stop-shop guide by Steve Collings on all aspects of UK auditing standards and new UK GAAP accounting standards. The chapter shows how to put the standards into practice, covering the scope of UK GAAP, recognition and measurement, modifications to terms and conditions, cash-settled share-based payment transactions, share-based payment transactions with cash alternatives, group plans, government-mandated plans, disclosure requirements and auditing share-based payment arrangements.

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eBooks

The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Share-based payment

Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Section 26 and IFRS, and covers general recognition principles, equity-settled transactions, cash-settled transactions, transactions with equity and cash alternatives, replacement share-based payment awards issued in a business combination, group share schemes, disclosures, and taxes related to share-based payment transactions.

Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Example accounts

Model accounts and disclosure checklists for UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 102 and share-based payments 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

GAAP 2019: UK reporting – FRS 102 (Volume B)
Deloitte, Croner-i, 2019
Comprehensive manual explaining how to apply FRS 102, with worked examples and extensive interpretation and guidance. The chapter on share-based payment covers recognition, recognition when there are vesting conditions, measurement of equity-settled and cash-settled share-based payment transactions, transactions with settlement alternatives, entities within groups, government-mandated plans, disclosures, movements in equity, and National Insurance Contributions on share-based payments.

Manual of accounting: UK GAAP
PwC, Lexis Nexis, 2019
Practical guide with worked examples throughout, dealing with day-to-day issues as well as complex questions. The chapter on share-based payment explains the classification of share-based payment transactions, recognition, measurement of equity-settled transactions and cash-settled transactions, transactions with cash alternatives, transactions for unidentifiable goods or services, National Insurance Contributions on share option gains, and disclosures.

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Ask ICAEW Technical Advisory Service

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

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