Page 16 - Finac1 Test 2 slides - 4. Share-based Payment (IFRS 2)

SHARE-BASED PAYMENT

Essential Elements

• Share – based payment is calculated based on the value of

the company

• In return for goods and services (.2/4/5)

• Not for cash
• Not for

• Raising capital

• IAS32 & 9 own shares
• Shares issued in business combination
• Most commonly for employees

• Different forms of SBP

• Issues shares, share options or other equity instruments

• Either new shares or buyback to provide shares
• Transfer cash based on the value of company

• Could be phanptom shares, share appreciation rights etc
• IFRS 2 applied to both types

16