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Amendment to FRS 20 (IFRS 2) share-based payment vesting conditions and cancellations

By: Language: English Series: ASB Financial Reporting Standard ; 2006Publication details: London ASB 2006Description: 23p. 21cmISBN:
  • 1841407933
Subject(s): LOC classification:
  • 657.3 $2 18
Summary: Proposals would amend IFRS 2 and FRS 20 to define vesting conditions and clarify the accounting treatment of cancellations by parties other than the entity. The proposals are being made because of uncertainties as to how the standards apply to employee share purchase plans. The proposed amendment would require cancellations by the employee to be treated in the same way as cancellations by the employer, resulting in an accelerated charge to profit and loss account of the amortised balance of the value of the options granted.

Proposals would amend IFRS 2 and FRS 20 to define vesting conditions and clarify the accounting treatment of cancellations by parties other than the entity. The proposals are being made because of uncertainties as to how the standards apply to employee share purchase plans. The proposed amendment would require cancellations by the employee to be treated in the same way as cancellations by the employer, resulting in an accelerated charge to profit and loss account of the amortised balance of the value of the options granted.

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