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Clarification of Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2) [Completed]

Effective date:

The amendments are effective for annual periods beginning on or after January 1, 2018.

Transitional provisions:

The amendments are effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

Last updated:

June 2016

Overview

The project brings together a collection of three proposed amendments to IFRS 2. The amendments, which were developed through the IFRS Interpretations Committee, provide requirements on the accounting for:

  1. the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments;
  2. share-based payment transactions with a net settlement feature for withholding tax obligations; and
  3. a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled.

Companies are required to apply the amendments for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

Other developments

June 2016

On June 20, 2016, the IASB issued final amendments to IFRS 2 "Share-based Payment", clarifying how to account for certain types of share-based payment transactions. The amendments, which were developed through the IFRS Interpretations Committee, provide requirements on the accounting for: (i) the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; (ii) share-based payment transactions with a net settlement feature for withholding tax obligations; and (iii) a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. Companies are required to apply the amendments for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

April 2016

On April 22, 2016, the IASB updated its Work Plan in respect of this project to note that it is expects to issue the final amendments in June 2016.

March 2016

On March 18, 2016, the IASB updated its Work Plan in respect of this project to note that it is currently drafting the final amendments, which it expects to issue by September 30, 2016.

February 2016

In February 2016, the IASB staff updated the Work Plan to indicate that the final amendments are expected to be issued in May 2016.

November 2015

On November 23, 2015, the IASB updated its Work Plan in respect of this project to note that it is currently drafting an Exposure Draft, which it expects to issue by February 29, 2016.

January 2015

Most recently, on January 7, 2015, the AcSB issued an ED that corresponds to the IASB’s ED on this topic.

November 2014

On November 25, 2014, the IASB issued for public comment an ED, Classification and Measurement of Share-based Payment Transactions.

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