The IASB issued an amendment to IFRS 2 Share-based Payment. The amendment clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. It also specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment.
The issues addressed in the amendment were first published in an exposure draft of proposed amendments to IFRS 2—Vesting Conditions and Cancellations in February 2006. In response to comments received during the consultation process the IASB decided to add to the Guidance on Implementing IFRS 2 guidance on the determination of whether a condition is a vesting condition and on the accounting treatment for conditions that are not vesting conditions.
The amendment will apply for annual periods beginning on or after 1 January 2009, with earlier application permitted.
IFRS 2 project page
Press release
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