References

• IFRS 2 Share-based Payment

History

• IFRIC D17 Issued 19 May 2005. Click for Press Release (PDF 66k).
• Comment Deadline 18 July 2005
• The draft Interpretation was available publicly on the IASB's Website during the comment period.
• IFRIC Interpretation 11 IFRS 2: Group and Treasury Share Transactions issued 2 November 2006. Click for Press Release (PDF 61k).

Deloitte Letter of Comment on this Draft Interpretation

• Our comment letters are posted here.

Summary of IFRIC D17

D17 was developed in response to requests for guidance on applying IFRS 2 to share-based payment transactions involving treasury shares or two or more entities within the same group of entities.

The proposed Interpretation provides guidance on whether particular types of transactions should be accounted for as cash-settled or equity-settled share-based payment transactions under IFRS 2. D17 proposes that share-based payment transactions in which a parent entity grants rights to its equity instruments directly to a subsidiary entity's employees should be accounted for as equity-settled transactions. Paragraph 11 proposes that, for transactions in which a subsidiary entity grants to its employees rights to equity instruments of its parent, the subsidiary entity should account for those transactions as cash-settled transactions. Therefore, in the subsidiary's individual financial statements, the accounting treatment of transactions in which a subsidiary's employees are granted rights to equity instruments of its parent would differ, depending on whether the parent or the subsidiary granted those rights to the subsidiary's employees. This is because the IFRIC concluded that, in the former situation, the subsidiary has not incurred a liability to transfer cash or other assets of the entity to its employees, whereas it has incurred such a liability in the latter situation (being a liability to transfer equity instruments of its parent).