IFRS 2 Share-based Payment – Accounting for share-based payment awards upon an entity's termination of an employee

Date recorded:

The Committee discussed the accounting treatment of share-based payment awards when the entity terminates the employment of an employee.

The Committee agreed that the entity's termination of an employee should be treated a forfeiture event since the employee was unable to satisfy the service condition. In addition, there was no need to determine the reasons why the entity terminated the employee. Were this route to be selected it might prove to be extremely subjective and difficult to ascertain the ultimate underlying purpose of the termination.

The Committee discussed whether to address this issue via an Agenda Decision or whether it should be presented as one of the IFRS 2 issues to be resolved by the IASB. Although some favoured issuing an Agenda Decision, the Committee ultimately agreed to include this issue as part of the bundle of IFRS 2 issues to be presented to the IASB in September.

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.