EFRAG final comment letter on the IASB's Exposure Draft of amendments to IFRS 2

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02 Apr 2015

The European Financial Reporting Advisory Group (EFRAG) has issued its final comment letter on the IASB Exposure Draft (ED) proposing amendments that would clarify the classification and measurement of share-based payment transactions.

ED/2014/5 Classification and measurement of share-based payment transactions considers the following the issues:

  • accounting for cash-settled share-based payment transactions that include a performance condition;
  • classification of share-based payment transactions with net settlement features; and
  • accounting for modifications of share-based payment transactions from cash-settled to equity-settled.

In its comment letter, EFRAG generally agrees with the IASB's assessment of the issues and with its proposed amendments to address them, as it believes that they provide practical solutions that would reduce divergences in application.

However, EFRAG is concerned that addressing more and more specific terms and conditions of different share-based plans is resulting in ever-increasing complexity in the requirements of IFRS 2. EFRAG believes that the IASB should envisage a more general review of IFRS 2 to consider all implementation issues in a principle-based way.

The press release and full comment letter are available on the EFRAG website.

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