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IASB clarifies the accounting for group cash-settled share-based payment transactions

18 June 2009

 

The International Accounting Standards Board (IASB) today issued amendments to IFRS 2 Share-based Payment that clarify the accounting for group cash-settled share-based payment transactions.

The amendments respond to requests the IASB received to clarify how an individual subsidiary in a group should account for some share-based payment arrangements in its own financial statements. In these arrangements, the subsidiary receives goods or services from employees or suppliers but its parent or another entity in the group must pay those suppliers

 

The IASB revised its initial proposals in the light of comments received. The amendments issued today clarify:

  • the scope of IFRS 2. An entity that receives goods or services in a share-based payment arrangement must account for those goods or services no matter which entity in the group settles the transaction, and no matter whether the transaction is settled in shares or cash.
  • the interaction of IFRS 2 and other standards. The Board clarified that in IFRS 2 a ‘group’ has the same meaning as in IAS 27 Consolidated and Separate Financial Statements, that is, it includes only a parent and its subsidiaries.

The amendments to IFRS 2 also incorporate guidance previously included in IFRIC 8 Scope of IFRS 2 and IFRIC 11 IFRS 2—Group and Treasury Share Transactions. As a result, the IASB has withdrawn IFRIC 8 and IFRIC 11.

The amendments to IFRS 2 Group Cash-settled Share-based Payment Transactions are available for eIFRS subscribers from today. Printed copies (ISBN 978-1-907026-09-6) will be available shortly, at £10 plus shipping, from:

IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730 Fax +44 (0)20 7332 2749
Email: publications@iasb.org Web: www.iasb.org

Press enquiries
  • Mark Byatt, Director of Corporate Communications, IASB
    Telephone: +44 (0)20 7246 6472,
    Email: mbyatt@iasb.org
  • Sonja Horn, Communications Adviser, IASB
    Telephone: +44 (0)20 7246 6463
    Email: shorn@iasb.org
Technical inquiries:
  • Tricia O’Malley, Director of Implementation Activities, IASB
    Telephone: +44 (0)20 7246 6929
    Email: tomalley@iasb.org
  • Dora Cheung, Practice Fellow, IASB
    Telephone: +44 (0)20 7246 6919
    Email: dcheung@iasb.org