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IASB issues amednments to IFRS 2
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The International Accounting Standards Board (IASB) 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 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 As a result, the IASB has withdrawn IFRIC 8 and IFRIC 11.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.
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