IFRS 2 — Share-based Payment

Effective date:

First effective as Canadian GAAP under Part I for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011, except for subsequent amendments.  Earlier application of Part I was permitted.  

Published by the IASB:

February 2004

Included in Part I of CPA Canada Handbook:

January 2010

Reach out to our IFRS 2 Specialist

Nick Capanna


IFRS 2 Share-based Payment requires an entity to recognize share-based payment transactions (such as granted shares, share options, or share appreciation rights) in its financial statements, including transactions with employees or other parties to be settled in cash, other assets, or equity instruments of the entity. Specific requirements are included for equity-settled and cash-settled share-based payment transactions, as well as those where the entity or supplier has a choice of cash or equity instruments.

An entity may receive goods or services in a share-based payment transaction. When the goods or services received or acquired in a share-based payment transaction do not qualify for recognition as assets, they shall be recognized as expenses. The entity shall recognize a corresponding increase in equity if the goods or services were received in an equity-settled share-based payment transaction, or a liability if the goods or services were acquired in a cash-settled share-based payment transaction. Equity-settled transactions are measured at the fair value of the goods or services received unless fair value cannot be reliably estimated in which case measurement is determined by reference to the fair value of the equity instruments granted. Cash-settled share-based payment transactions are measured at the fair value of the liability incurred.

IFRS 2 contains specific requirements dealing with the various types of conditions and features that may be found in share-based payment transactions. Appendix B to IFRS 2 provides application guidance on specific areas such as estimating fair value, modifications to equity-settled arrangements and share-based payment transactions among group entities.

History of IFRS 2

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.




Included in Part I of the CPA Canada Handbook2

January 2010

Part I of the CPA Canada Handbook issued

Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted.

January 2010

December 12, 2013

Amended by Annual Improvements to IFRSs 2010–2012 Cycle (definition of vesting condition)

The amendments clarify the definition of vesting conditions.

Effective for annual periods beginning on or after July 1, 2014. Earlier application permitted.

March 2014

June 20, 2016

Final amendments to IFRS 2

The amendments provide requirements on the accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; share-based payment transactions with a net settlement feature for withholding tax obligations; and 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.

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

November 2016


  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

The above summary does not include details of consequential amendments made as the result of other projects.

Related Interpretations

Related IFRIC Agenda Rejection Notices

The rejection notices are available in our Deloitte Global section.

  • IFRS 3 & IFRS 2 — Accounting for reverse acquisitions that do not constitute a business (March 2013)
  • IFRS 2 — Share-based payment awards settled net of tax withholdings (March 2011)
  • IFRS 2 — Transactions in which the manner of settlement is contingent on future events (January 2010)
  • IFRS 2 — Employee benefit trusts in the separate financial statements of the sponsor (November 2006)
  • IFRS 2 — Incremental fair value to employees as a result of unexpected capital restructurings (November 2006)
  • IFRS 2 — Fair value measurement of post-vesting transfer restrictions (November 2006)
  • IFRS 2 — Share plans with cash alternatives at the discretion of employees: grant date and vesting periods (May 2006)
  • IFRS 2 — Scope of IFRS 2: Share plans with cash alternatives at the discretion of the entity (May 2006)
  • IFRS 2 — Employee share loan plans (November 2005)

AcSB’s IFRS Discussion Group meetings

Amendments under consideration

  • None

Correction list for hyphenation

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