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IFRS 2 - Share-based Payment


Entities often grant shares or share options to employees or other parties. Share plans and share option plans are a common feature of employee remuneration, for directors, senior executives and many other employees. Some entities issue shares or share options to pay suppliers, such as suppliers of professional services.

Until this IFRS was issued, there was no IFRS covering the recognition and measurement of these transactions. Concerns were raised about this gap in IFRSs, given the increasing prevalence of share-based payment transactions in many countries.

EFRAG published its final comment letter in March 2003.

The IASB published IFRS 2  Share-based Payment in 2004, effective from 1 January 2005.  IFRS 2 requires recognition of an expense for all share-based payments. IFRS 2 was endorsed in April 2004 and published in the Official Journal in February 2005. 

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