IASB staff presented a paper on share based payments. The key points are as follows:

• The only existing standard is FAS 123, but this requires recognition only in limited circumstances.
• The German standards board hopes to issue a draft standard soon that will require recognition and expensing of the payments.
• The Danish standards board is issuing a similar draft standard and will continue to monitor international developments.
• US analysts are not content with the information provided by FAS 123, and FASB recognises that something further needs to be done to provide transparent, comparable and high quality information in relation to share based payments.
• All standard setters voiced concerns about being seen to 'go it alone', that is, they all want to pursue the project on an international basis.
• The project will cover all SBP issues: recognition, timing and methodology for measurement, and other issues such as lapsed/forfeited options.
• The Canadian ASB expects to issue a final standard strongly encouraging the FAS 123 approach in the near future.
• UK ASB reported considerable support for the G4+1 paper from the user community, but there remains a huge difference of opinion on how the payments should be measured.
• Concern was raised in relation to the communication process and the fact that IASB intends to go straight to an exposure draft as opposed to issuing a discussion paper. The Board will discuss this further later this week.
• Australian ASB reported that they are happy to put this on their agenda and to work with the IASB on this project. They also reported that there is currently significant legislative pressure in relation to disclosure of directors remuneration in Australia.
• Japan reported that this is not now on their agenda, but the issue should be pursued. They are concerned about the process and made the comment that the G4+1 paper is not a substitute for an IASB discussion paper.