IFRS 2 share-based payment rules amended

The International Accounting Standards Board (IASB) has issued limited amendments to IFRS 2 Share-based Payment, clarifying how to account for certain types of share-based payment transactions

The amendments clarify requirements on accounting for:

  • the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments;
  • share-based payment transactions with a net settlement feature for withholding tax obligations; and
  • a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled.

Companies are required to apply the amendments for annual periods beginning on or after 1 January 2018. Earlier application is permitted.

The amendments follow consultation with stakeholders and were developed through the IFRS Interpretations Committee.

Further information about the amendments - Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2) - can be accessed here 

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