About
IFRS 2 specifies the financial reporting by an entity when it undertakes a share-based payment transaction, including issue of share options. It requires an entity to recognise share-based payment transactions in its financial statements, including transactions with employees or other parties to be settled in cash, other assets or equity instruments of the entity. It requires an entity to reflect in its reported profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in which share options are granted to employees.
What you should know
- Know and apply the definitions related to share-based payment transactions.
- Distinguish between equity-settled, cash-settled and choice-of-settlement share-based payment transactions.
- Measure equity-settled share-based payment transactions at grant-date fair value.
- Account for vesting conditions and recognise the related expense over the vesting period.
- Account for cash-settled share-based payment transactions and remeasure the liability at each reporting date.
- Present and disclose share-based payment transactions in the financial statements.
- Explain the objective and scope of IFRS 2
- Distinguish between cash‐settled and equity‐settled share‐based payment transactions
- Demonstrate how equity‐settled and cash‐settled share‐based payment transactions are recognised
- Explain how equity‐settled share‐based payment transactions are measured
- Explain the concept of vesting through differentiating between vesting and non‐vesting conditions
- Discuss several other considerations
- Explain how modifications to granted equity instruments are treated
- Demonstrate how cash‐settled share‐based payment transactions are measured
- Describe and apply the disclosure requirements of IFRS 2