IFRS 2 — Vesting and non-vesting conditions


The IFRIC received a request in May 2009 to clarify the definition of vesting conditions and non-vesting conditions in IFRS 2 Share-based Payment. In particular, the questions the IFRIC was asked to clarify are:

  • Does there need to be a direct link between a performance target and the individual employee's service for a condition to be a performance condition?
  • When determining whether a target qualifies as a performance condition, does it matter whether the specified service period is shorter or longer than the period over which the performance target should be met?


Current status of the project

This project is currently on hold. The IASB continues to monitor issues arising in relation to IFRS 2.


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.