| Description : |
The objective of the project is to amend IFRS 2 Share-based Payment to clarify the definition of vesting conditions and provide guidance on the accounting treatment of cancellations by parties other than the entity.
At present, IFRS 2 describes vesting conditions as including service conditions and performance conditions but is silent on whether other features of a share-based payment transaction are vesting conditions.
IFRS 2 also specifies the accounting treatment when an entity cancels a grant of equity instruments. However, it does not state how cancellations by a party other than the entity should be accounted for.
The International Financial Reporting Interpretations Committee (IFRIC) considered these issues in its draft Interpretation D11 Changes in Contributions to Employee share Purchase Plans, which was published for comment in December 2004. However, the IFRIC was unable to reach a consensus and the issues were referred to the Board.
The Board agreed that these issues should be clarified and proposes the following amendments:
Vesting conditions are restricted to service conditions and non-market performance conditions;
Cancellations by parties other than the entity will be accounted for in the same way as cancellations by the entity (paragraph 28 of IFRS 2).
The amendments will be applied retrospectively in annual periods beginning on or after 1 January 2009.
The Exposure Draft Proposed Amendments to IFRS 2 - Vesting Conditions and Cancellations was published on 2 February 2006 with an invitation to comment by 2 June 2006. The final standard was issued in January 2008. |
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| Working groups : |
EFRAG Technical Expert Group (TEG) - EFRAG Secretariat - |
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| Current Project Status : |
Published in Official Journal
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| Input for Status : |
Published in Official Journal
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Efrag Output
No 'Efrag Output'
Comment Letters
No 'Comment Letters'
Other Input
No 'Other Input'
News Items
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