IFRS 2: Share-Based Payments

1. Introduction and Objective

International Financial Reporting Standards (IFRS) are standards adopted by the IASB that constitute a global manual. IFRS 2 requires an entity to recognize share‑based payment transactions (options, granted shares or appreciation rights), whether settled in cash, equity instruments or other assets.

Main objective: Specify the financial information reflecting in the results and financial position the effects of these transactions, including expenses for employee‑granted options.

2. Scope and Exceptions

• What does it include? It applies to transactions settled through equity instruments, cash, payment‑method choice options, or those settled by another group entity. It covers assets such as inventories, property, plant and equipment, and intangible assets.
• What does NOT include? Transactions with employees as holders of equity instruments, assets acquired in business combinations (IFRS 3) or contracts under IAS 32 and IFRS 9.

3. Measurement and Recognition

• Fair Value: The IFRS 2 uses the term “fair value” under its own rules and not under IFRS 13.
• Recognition moment: Goods or services are recognized at the moment of obtaining the goods or receiving the services.
• Counterpart and Classification: Increases equity if settled in shares, or creates a liability if in cash. If they do not qualify as assets, they are recorded directly as expenses.