Amendment to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations

Date recorded:

Staff informed the Board that the redeliberation of the ED is close to its end but that constituents raised concerns about certain aspects within IFRS 2, in particular in relation to the grant date, where it was noted by that there are significant differences to US GAAP. Therefore, the staff asked the Board how it wishes to continue with this project. The following alternatives were presented:

  • The Board proceeds with the proposed Amendment with no further work on the other issues;
  • The Board proceeds with the Amendment and adds a separate new project to its agenda to consider other critical issues, including the determination of the grant date; or
  • The Board does not finalise the amendment and, instead, adds a new project to its agenda to consider a range of critical issues, including the determination of the grant date and the issues addressed in the proposed Amendment.

The Board had a short discussion on the merits of a more comprehensive project on IFRS 2 with a focus of convergence with US GAAP. The Board also expressed concern that dropping the ED as proposed would not help as it fixes certain problems but does not worsen other perceived issues. The Board agreed to proceed with the proposed amendment as soon as possible to allow for early adoption at year end, but also allocate resources to investigate on ways to improve IFRS 2 and share-based payment accounting as a whole. That should preferably be done together with the FASB. The result should be a proposal to add a new project to the IASB's agenda at the next agenda meeting.

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