IFRS 2 — Changes in contributions to employee stock purchase plans (ESPPs)
The IFRIC considered the accounting for employee contributions to employee share purchase plans (ESPPs), such as the save-as-you-earn plans in the United Kingdom, and for changes in those contributions.
Where an employee ceases to participate in a savings plan and therefore loses the right to exercise options, there are two viable alternative treatments. The first is to treat this as a cancellation and to recognise the remaining expense to be recognised immediately, or the second to continue to recognise the expense over the previously determined vesting period.
Current status of the project
IFRIC removed this topic from its agenda at its December 2005 meeting. The IASB subsequently considered these issues in its project on vesting conditions and cancellations.
|16 December 2004||IFRIC Draft Interpretation D11 Changes in Contributions to Employee Share Purchase Plans (ESPPs) issued||Comment deadline is 1 March 2005|