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IFRS 2 — Transactions in which the manner of settlement is contingent on future events

Date recorded:

The Committee received a request to clarify how to account for share-based payment transactions for which the manner of settlement is contingent on either:

  1. Issue A - a future event that is outside the control of both the entity and the counterparty; or
  2. Issue B - a future event that is within the control of the counterparty.

The Staff has performed its analysis and outreach and came with the following recommendations:

  • Issue A – this is a common issue, however, it should not be added to the Committee’s agenda as the issue should be considered within the broader IFRS 2 project by the IASB.
  • Issue B – this is not a wide spread issue, therefore, it should not be added to the Committee’s agenda.

A couple of members said, and the Chairman agreed, that they would like to add Issue A to the Committee’s agenda as it was common and they would like the Committee to try and to potentially resolve it.

The Chairman instructed the Staff to have a second look at Issue A with an objective to identify potential solutions.

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