IASB Clarifies Group Cash-settled Share-based Payment Transactions Accounting
The International Accounting Standards Board (IASB) has 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 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 amendments issued clarify:
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 As a result, the IASB has withdrawn IFRIC 8 and IFRIC 11.