Page 5 - Finac1 Test 2 slides - 4. Share-based Payment (IFRS 2)
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SHARE-BASED PAYMENT
Introduction
• Entities often use shares or share options to pay
employees and other parties for goods delivered or
services rendered.
• Despite the substantial amounts involved, these
transactions are often not accounted for as it is
argued that there is not an outflow of economic
benefits.
• IFRS 2 provides guidance on how these transactions
should be dealt with in financial statements.
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