The International Accounting Standards Board (IASB) has issued the final amendments to IFRS 2: Share-based payment. The amendments provide requirements on the accounting for:
The International Accounting Standards Board (IASB) has issued the final amendments to IFRS 2: Share-based payment. The amendments provide requirements on the 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.
Share-based payments, where an employer meets the employee’s tax liability by withholding a specified portion of the equity instruments (known as ‘net settlement’), will be treated as equity settled in their entirety, if the entire award would otherwise be classified as equity settled without the net settlement feature. See www.bit.ly/28J4eIx.
The IASB consulted on an exposure draft of these changes between November 2014 and March 2015.
The International Accounting Standards Board (IASB) has issued the final amendments to IFRS 2: Share-based payment. The amendments provide requirements on the accounting for:
The International Accounting Standards Board (IASB) has issued the final amendments to IFRS 2: Share-based payment. The amendments provide requirements on the 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.
Share-based payments, where an employer meets the employee’s tax liability by withholding a specified portion of the equity instruments (known as ‘net settlement’), will be treated as equity settled in their entirety, if the entire award would otherwise be classified as equity settled without the net settlement feature. See www.bit.ly/28J4eIx.
The IASB consulted on an exposure draft of these changes between November 2014 and March 2015.
