ASB issues Amendment to FRS 20 on Group Cash-settled Share-based Payment Transactions
02 September 2009
It clarifies group cash-settled share-based payment transactions in the separate financial statements of the entity receiving the goods or services when that entity has no obligation to settle the share-based payments transaction.
The Accounting Standards Board has published an amendment to FRS 20 (IFRS 2) ‘Share-Based Payment – Group Cash-settled Share-based Payment Transactions’. The amendment clarifies both the scope of the standard and the accounting for group cash-settled share-based payment transactions in the separate or individual financial statements of the entity receiving the goods or services when that entity has no obligation to settle the share-based payments transaction.
The amendment corresponds to that issued by the International Accounting Standards Board (IASB) in June 2009 and maintains the equivalence between FRS 20 and IFRS 2. In line with the IASB withdrawing IFRIC 8 ‘Scope of IFRS 2’ and IFRIC 11 ’Group and Treasury Share Transactions’, the ASB will withdraw UITF 41 ‘Scope of FRS 20’ and UITF 44 ‘Group and Treasury Share Transactions’.
The ASB issued a Financial Reporting Exposure Draft proposing the amendments in January 2008. Respondents in the United Kingdom and the Republic of Ireland were supportive of the proposal to update the FRS.
Entities are required to apply the amendments retrospectively for annual periods beginning on or after 1 January 2010.
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