IFRIC08 BV2009 - IFRIC 8 IFRIC Interpretation 8 Scope of...

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IFRIC 8 IFRIC Interpretation 8 Scope of IFRS 2 This version includes amendments resulting from IFRSs issued up to 31 December 2008. IFRIC 8 Scope of IFRS 2 was developed by the International Financial Reporting Interpretations Committee and issued by the International Accounting Standards Board in January 2006. IAS 1 Presentation of Financial Statements (as revised in September 2007) 1 amended the terminology used throughout IFRSs, including IFRIC 8. 1 effective date 1 January 2009 © IASCF 1
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IFRIC 8 C ONTENTS paragraphs IFRIC INTERPRETATION 8 SCOPE OF IFRS 2 REFERENCES BACKGROUND 1–5 SCOPE 6 ISSUE 7 CONSENSUS 8–12 EFFECTIVE DATE 13 TRANSITION 14 ILLUSTRATIVE EXAMPLE BASIS FOR CONCLUSIONS 2 © IASCF
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IFRIC 8 IFRIC Interpretation 8 Scope of IFRS 2 (IFRIC 8) is set out in paragraphs 1–14. IFRIC 8 is accompanied by an Illustrative Example and a Basis for Conclusions. The scope and authority of Interpretations are set out in paragraphs 2 and 7–17 of the Preface to International Financial Reporting Standards . © IASCF 3
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IFRIC 8 IFRIC Interpretation 8 Scope of IFRS 2 References IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IFRS 2 Share-based Payment Background 1 IFRS 2 applies to share-based payment transactions in which the entity receives or acquires goods or services. ‘Goods’ includes inventories, consumables, property, plant and equipment, intangible assets and other non-financial assets (IFRS 2, paragraph 5). Consequently, except for particular transactions excluded from its scope, IFRS 2 applies to all transactions in which the entity receives non-financial assets or services as consideration for the issue of equity instruments of the entity. IFRS 2 also applies to transactions in which the entity incurs liabilities, in respect of goods or services received, that are based on the price (or value) of the entity’s shares or other equity instruments of the entity. 2 In some cases, however, it might be difficult to demonstrate that goods or services have been (or will be) received. For example, an entity may grant shares to a charitable organisation for nil consideration. It is usually not possible to identify the specific goods or services received in return for such a transaction. A similar situation might arise in transactions with other parties. 3 IFRS 2 requires transactions in which share-based payments are made to employees to be measured by reference to the fair value of the share-based payments at grant date (IFRS 2, paragraph 11). * Hence, the entity is not required to measure directly the fair value of the employee services received. 4 For transactions in which share-based payments are made to parties other than employees, IFRS 2 specifies a rebuttable presumption that the fair value of the goods or services received can be estimated reliably. In these situations, IFRS 2 requires the transaction to be measured at the fair value of the goods or services at the date the entity obtains the goods or the counterparty renders service (IFRS 2, paragraph 13). Hence, there is an
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This note was uploaded on 02/22/2012 for the course ACCOUNTING 402 taught by Professor Sanaabadry during the Spring '12 term at DISD.

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IFRIC08 BV2009 - IFRIC 8 IFRIC Interpretation 8 Scope of...

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