This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Share-based Payment

Date recorded:

The Board was given an update on the US FASB re-deliberations of the FASB Exposure Draft on share-based payment. The staff noted several differences that may exist if the FASB proceed on their current path - notably the treatment of deferred taxes, scope, debt-equity distinction, and the option proposed by the FASB to recognise expense relating to options with graded vesting conditions on a straight-line basis.

The Board believed the biggest difference related to deferred tax and discussed their concern over the FASB's approach. Specifically, IFRS 2 measures deferred tax based on the current intrinsic value. The FASB's proposal is to measure the deferred tax on the compensation expense recognised, thereby reducing the amount shown as compensation expense as it would be presented net of tax. The IASB does not agree with this approach, but will consider this issue during the convergence project once the FASB completes all of its phases of its share-based payment project (which could be several years).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.