IFRIC 11 IFRS 2 - Group and Treasury Share Transactions
Status of the issue:
With the publication of IFRIC 11 IFRS 2 – Group and Treasury Share Transactions in November 2006, the IFRIC completed its work on this project. Website content relating to this project will be deleted in or around March 2008.
Summary of the issue:
Draft Interpretation D17 IFRS 2 Group and Treasury Share Transactions was issued in May 2005. The deadline for public comments was 18 July 2005.
D17 addresses share-based payment arrangements in which:
(a) an entity grants to its employees rights to equity instruments of the entity, and either chooses or is required to buy those equity instruments from another party, to satisfy its obligations to its employees under the share-based payment arrangement.
(b) an entity’s employees are granted rights to equity instruments of the entity, either by the entity itself or by its shareholder, and the shareholder provides the equity instruments needed to settle the share-based payment arrangement.
(c) a subsidiary entity’s employees are granted rights to equity instruments of the parent entity (or another entity in the same group), in particular, arrangements in which:
(i) the parent entity grants those rights direct to the subsidiary entity’s employees, and
(ii) the subsidiary entity grants those rights to its employees.
Latest progress on the issue:
A revised text for an Interpretation developed from D17 IFRS 2 – Group and Treasury Share Transactions was presented at the September 2006 IFRIC meeting.
The IFRIC decided to present the revised text to the Board, after amendment to reflect changes agreed at the meeting, with a request that the Board approve it for issue as an Interpretation (see IFRIC Update September 2006 for detail).
The Board approved the Interpretation at its October 2006 meeting following which IFRIC 11 IFRS 2 - Group and Treasury Share Transactions was issued on 2 November 2006.
Last discussed by the IFRIC:
Discussed by the IASB: