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07/10/2016 - EFRAG requests comments on its draft endorsement advice on Classification and Measurement of Share-based Payment Transactions - Amendments to IFRS 2

​EFRAG is consulting on both its assessment of the Amendments against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good.

​EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Classification and Measurement of Share-based Payment Transactions - Amendments to IFRS 2 ('the Amendments').

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; and
  • 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.

The Amendments become effective for annual periods beginning on or after 1 January 2018, with earlier application permitted.

EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement.

EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.

The draft endorsement advice can be found here and the invitation to comment here.

Comments are requested by 10 November 2016. You can comment on EFRAG’s draft endorsement advice by clicking on the ‘Comment publication’ link below.

EFRAG has also updated its Endorsement Status Report, which can be downloaded here.