Amendtments to IFRS 2 - Classification and Measurement of Share-based Payment Transactions
EU has published a Commission Regulation endorsing the amendments to IFRS 2, which are effective for annual periods beginning on or after 1 January 2018, with earlier application permitted.
The objective of the amendments is to provide guidance on three issues reported by the IFRS Interpretations Committee regarding:
- the effects of vesting conditions on the measurement of a cash-settled share-based payment
- the classification of share-based payment transactions with net settlement features for withholding tax obligations
- the accounting for a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled.
Link to the publication in the Official Journal of the European Union: Commission Regulation (EU) 2018/289 of 26 February 2018