The objective of IFRS 2 is to specify the financial reporting by an entity when it undertakes a share-based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in which share options are granted to employees.

IFRS 2 applies to all share-based payments, including transactions with employees or other parties to be settled in cash, other assets, or equity instruments of the entity.

There are no exceptions to the IFRS, other than for transactions to which other Standards apply (most often IFRS 3, Business Combinations). IFRS 2 also applies to transfers of equity instruments of the entity’s parent, or equity instruments of another entity in the same group as the entity, to parties that have supplied goods or services to the entity.

IFRS 2, Share-based Payment — 2012

For a more comprehensive course for IFRS 2, see, IFRS 2, Share-based Payment — 2012.

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Further resources on IFRS/IAS

Other IFRS/IAS articles and Professional Development Courses on PD Net

Stephen Spector, FCGA, is a Lecturer currently teaching Auditing, and Financial and Managerial Accounting at Simon Fraser University. He became a CGA in 1985 after obtaining his Master of Arts in Economics from SFU in 1982. In 1997, CGA-BC presented him with the Harold Clarke Award of Merit for recognition of his service to the By-Laws Committee for 1990-1996, and in 2010 he was awarded Life Membership by CGA-BC, and in 2011, he was presented with the Chair’s Award for Education. In 1999, Stephen received the Fellow Certified General Accountant  (FCGA) award for distinguished service to the Canadian accounting profession. He has been on SFU’s Faculty of Business Administration’s Teaching Honour Roll for May 2004 to April 2005, May 2006 to April 2007, and May 2008 to April 2011. In August 2008, he was one of the two annual winners of the Business Faculty’s TD Canada Trust Distinguished Teaching Award. He is the Faculty of Business Administration’s University Teaching Fellow. Stephen has also held a number of volunteer positions with CGA-BC; he was a member of the CGA-BC’s Board of Directors from 1998 to 2011, and was CGA-BC’s 2009 President.