Page 15 - Finac1 Test 2 slides - 4. Share-based Payment (IFRS 2)

SHARE-BASED PAYMENT

Accounting for SBP

• It is one of the method being used by many

companies to compensate employees

• Advantage

• Cheap and free for the company

• Aligns business owners and employees incentives

• Creates employee loyalty

• Employee can get very rich

• IFRS 2 was issued

• To show the expense to P/L

• Related to share based payment schemes

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