We disagree with IFRIC's draft decision on contingent settlements
20 Dec 2009
In a letter to IFRIC, Deloitte Touche Tohmatsu disagree with the IFRIC's tentative decision not to take onto the IFRIC's agenda a request for an interpretation on the application of IFRS 2 Share-based Payment to transactions in which the manner of settlement is contingent of future events.
We believe that the IFRIC should use its mandate enlarged by the IASB and propose guidance on treatment of IFRS 2 transactions in which the manner of settlement is contingent on future events as part of the annual improvements process. We believe that the issue is sufficiently narrow in scope to be addressed within the remits of the annual improvements process rather than as part of a post-implementation review of IFRS 2: that might delay addressing the issue by several years. Click for our Letter to IFRIC (PDF 26k).