IFRS 2 – Vesting and non-vesting conditions
Review of requests received in relation to IFRS 2 by the Committee
At its September 2010 meeting, the Board discussed the Interpretations Committee's recommendations regarding vesting and non-vesting conditions relating to IFRS 2 Share-based Payment. After doing so, the Board asked the Interpretations Committee to review the other requests that it had received in relation to IFRS 2 with a view to helping the staff to develop an agenda proposal that could be considered as part of the setting of the new agenda in 2011.
The staff brought to the Committee a summary of various IFRS 2 issues that had been received since 2005. A summary of the issues and the staff recommendations are as follows:
One Committee member mentioned that the issue of incremental fair value to employees as a result of unexpected capital restructuring is something that is becoming more and more common. The Committee Chairman responded that plan agreements which do not contain provisions for capital restructurings are a matter for the company's legal counsel moreso than an accounting issue.
Certain Committee members were somewhat confused on the Board's process for addressing issues associated with IFRS 2. The staff clarified that the Board is not currently planning a post-implementation review of IFRS 2 but has a separate consultation process ongoing on the post-implementation review process. However, these issues may be raised as a separate project to amend IFRS 2 rather than through the post implementation review process.