IFRS 2: Share-based payment transactions with non-employees
This article discusses the discusses the accounting for share-based payment transactions with non-employees.
The use of share-based payments has grown significantly over time, with many organisations opting to compensate directors, senior executives, employees and other providers of goods and services through equity instruments or cash and other assets linked to the value of equity instruments.
The accounting treatment for agreements with settlement alternatives depends on which party has the choice of settlement.
This article discusses share-based payment arrangements that provide either the entity or the employee with a choice as to whether settlement occurs in equity instruments or in cash or other assets (hereafter ‘cash’).
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