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EFRAG has published a feedback statement following the publication of its final comment letter on the IASB’s ED/2014/5 Classification and Measurement of Share-based Payment Transactions (Proposed amendments to IFRS 2).
A majority of respondents did not support EFRAG’s view on the proposed transition provisions: these respondents supported the IASB’s proposals to apply the amendments in the ED prospectively, whereas EFRAG’s recommendation was to apply them retrospectively, in accordance with the general requirement in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
Lastly, a few respondents did not agree with EFRAG’s request that the second amendment should not be characterised as an exception. They believed that IFRS 2 is rule-based and giving precedence to the economic substance of the arrangement, rather than to the existing definition of cash- settled share based payments, could undermine the nature of the existing guidance and could have an impact on the consistency of its application.