28. June 2017

ASCG exposes draft implementation guidance on IFRS 2 (ED-IG 4)

EToday the ASCG has issued the draft implementation guidance on IFRS 2 Share-based payments. The comment deadline is 11 August 2017 (bahrmann@drsc.de).

After the IASB had issued the final amendments to IFRS 2 the ASCG performed outreach on the clarity of the new requirements on net settlement features in IFRS 2.

Considering the insights from this consultation the IFRS Technical Committee noted, that these new requirements do not properly and prominently address compensatory cash payments from equity instruments withheld in excess. Therefore, the Committee had decided to assist reporting entities by providing implementation guidance.

ED-IG 4 Equity-settled share-based payments with net settlement features: Accounting for cash compensation should not be seen as an interpretation. Instead it reproduces the deliberations made by the IASB, the IFRS IC, and their staff on this issue, that had not been incorporated into IFRS 2.