Chapter 2 edited

School: National Aviation Academy - Course: ACCOUNT 3250 - Subject: Accounting

Advanced Financial Accounting I Lecture Note2022 CHAPTER TWO ACCOUNTING FOR SHARE BASED PAYMENT (IFRS2 ) 2.1 Overview of Share Based Payment IFRS2 defined as'share-based payment is an agreement between the entity (or another group entity or any shareholder of any group entity) and another party, including an employee that entitles the other party to receive: a.cash or other assets of the entity for amounts that are based on the price (or value) of equity instruments (including shares or share options) of the entity or another group entity; or b.Equity instruments (including shares or share options) of the entity or another group entity provided that the specified vesting conditions are met. A Share based transaction is a transaction in which the entity: Øreceives goods or services from the supplier of those goods or services (including an employee) in a share-based payment arrangement, or ØIncurs an obligation to settle the transaction with the supplier in a share-based payment arrangement when another group entity receives those goods or services.Goods received could include inventories, consumables, property, plant and equipment, intangible assets, and other non- financial assets. In its scope of IFRS 2,there are three main categories of share-based payment transactions. 1)Equity-settled 2)Cash-settled 3)Alternatives whether the entity settles the transaction in cash or by issuing equity instruments The following types of transactions are not within the scope of IFRS 2, and therefore not accounted for as share-based payment transactions: üTransactions with counterparties acting as shareholders rather than as suppliers of goods or services, for example, if an employee participates in a rights issue to purchase shares of its employer at a discount to fair value üShares issued as consideration to acquire a business accounted for under IFRS 3Business Combinations ütransactions in which a share-based payment is made in exchange for control of a business; and üshare-based payment transactions in which the entity receives or acquires goods or services under a contract within the scope of financial instruments standards üacquisition of non-controlling interests after control is obtained, because IFRS 10 is generally the specific standard applicable to the transaction;

Expert's Answer

Your future, our responsibilty submit your task on time.

Order Now

Need Urgent Academic Assistance?

Get Professional Help at Low Prices!

*
*
*


*

TOP
Order Notification

[variable_1] from [variable_2] has just ordered [variable_3] Assignment [amount] minutes ago.