IFRS 2 — Treasury share transactions and group transactions
Background
The project involves the issues that arise when a subsidiary gives its employee benefits in the form of rights to purchase shares in its parent, and when an entity must purchase its own shares to satisfy IFRS 2 Share-based Payment obligations.
The project includes the following cases:
- A single entity that voluntarily purchases its own shares to satisfy an obligation to issue shares
- A single entity that mandatorily purchases its own shares to satisfy an obligation to issue shares
- A group where the subsidiary grants share options over shares in the parent
- A group where the subsidiary grants share options over shares in the parent and the parent levies an inter-company charge
- A group where the subsidiary grants share options over shares in the parent which it buys shares on market to satisfy
- A group where the subsidiary grants share options over shares in the parent which it purchases shares from the parent to satisfy
- A group where the subsidiary grants cash benefits based on the market price of the parent company shares
- A group where employees are moved from entity to entity.
Current status of the project
This project has been completed. IFRIC 11 IFRS 2 – Group and Treasury Share Transactions was issued on 2 November 2006.
Project milestones
Date | Development | Comments |
---|---|---|
19 May 2005 | IFRIC D17 IFRS 2 – Treasury Share Transactions issued | Comment Deadline 18 July 2005 |
2 November 2006 | IFRIC 11 IFRS 2 – Group and Treasury Share Transactions issued | Effective for annual periods beginning on or after 1 March 2007 |