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IFRS 2 — Treasury share transactions and group transactions

Background

The project involves the issues that arise when a subsidiary gives its employee benefits in the form of rights to purchase shares in its parent, and when an entity must purchase its own shares to satisfy IFRS 2 Share-based Payment obligations.

The project includes the following cases:

  • A single entity that voluntarily purchases its own shares to satisfy an obligation to issue shares
  • A single entity that mandatorily purchases its own shares to satisfy an obligation to issue shares
  • A group where the subsidiary grants share options over shares in the parent
  • A group where the subsidiary grants share options over shares in the parent and the parent levies an inter-company charge
  • A group where the subsidiary grants share options over shares in the parent which it buys shares on market to satisfy
  • A group where the subsidiary grants share options over shares in the parent which it purchases shares from the parent to satisfy
  • A group where the subsidiary grants cash benefits based on the market price of the parent company shares
  • A group where employees are moved from entity to entity.

 

Current status of the project

This project has been completed. IFRIC 11 IFRS 2 – Group and Treasury Share Transactions was issued on 2 November 2006.

 

Project milestones

DateDevelopmentComments
19 May 2005 IFRIC D17 IFRS 2 – Treasury Share Transactions issued Comment Deadline 18 July 2005
2 November 2006 IFRIC 11 IFRS 2 – Group and Treasury Share Transactions issued Effective for annual periods beginning on or after 1 March 2007