14. September 2017

ASCG Implementation guidance on IFRS 2 adopted

On 13 September 2017 the ASCG has finally adopted the Implementation Guidance ASCG IG 4 Equity-settled share-based payments with net settlement features: Accounting for cash compensation. Previously, the IFRS Technical Committee had approved the text of the Implementation Guidance subject to drafting amendments on its 61st meeting on 4 September.
The Implementation Guidance addresses the accounting for compensatory cash payments to employees from equity instruments withheld in excess in relation to withholding tax obligations arising from equity-settled share-based payments (net settlement features). After the IASB had issued the final amendments to IFRS 2 in June 2016, the IFRS-Technical Committee had noted that this circumstance is not addressed properly and prominently in the standard.
The text of the Implementation Guidance is going to be issued with the next supplement on the German Accounting Standards, coming in 2017.