ARC postpones advisory vote on IFRS 2
03 Dec 2004
The European Commission's Accounting Regulatory Committee (ARC), which advises the Commission regarding endorsement of IFRSs for use in Europe, voted on 30 November to endorse the improved versions of IASs that were adopted by the IASB in December 2003 and later, as well as IFRSs 3, 4, and 5. But the ARC postponed to its next meeting on 20 December 2004 a vote on whether to recommend IFRS 2 Share-based Payment.
IFRS 2 requires that companies recognise as compensation expense the fair value of share options given to employees. The EU Accounting Regulation requires European listed companies to begin preparing their consolidated financial statements using IFRSs in 2005 but only after each individual IAS, IFRS, and Interpretation has been endorsed for use in Europe by the European Commission. In making its endorsement decision, the Commission considers the advice from the ARC as well as from the European Financial Reporting Advisory Group (EFRAG).