Background

This IFRIC project considered which equity instruments are included in the scope of IFRS 2 Share-based Payment.

IFRS 2 applies to share-based payment transactions in which the entity receives or acquires goods or services. However, in some situations, it might be difficult to demonstrate that the entity has received goods or services. This raises the question of whether IFRS 2 applies to such transactions.

This question arose in the context of particular transactions, such as shares granted to parties other than employees who are from a particular section of the community (historically disadvantaged individuals), as a means of enhancing an entity's image as a good corporate citizen.

This project also considered the additional question of if an entity has made a share-based payment and the identifiable consideration received (if any) appears to be less than the fair value of the share-based payment, does this situation indicate that goods or services have been received, even though those goods or services are not specifically identified?

Current status of the project

This project has been completed. IFRIC 8 Scope of IFRS 2 was issued on 12 January 2006.

Project milestones