International Financial Reporting Standards_guide.pdf

Chapter 29 Share-Based Payment (IFRS 2) 311
29.4.3 If the goods or services received do not meet the requirements to be recognized as an
asset (for example, inventory), the entity shall recognize an expense (for example, services
received or employee benefits).
Measurement
29.4.4 Share-based payment transactions should be measured at:
■ the fair value of the goods or services received in the case of all third-party
nonemployee transactions, unless it is not possible to measure the fair value of
those goods or services reliably; or
■ the fair value of the equity instruments in all other cases, including all employee
transactions.
Equity-Settled Share-Based Payment Transactions
Recognition
29.4.5 An entity should recognize the goods or services received or acquired in a sharebased
payment transaction when it obtains the goods or as the services are received. For
equity-settled share-based payment transactions, a corresponding increase should be recognized
in equity.
Measurement
29.4.6 The fair value of the equity instruments issued or to be issued should be measured:
■ at grant date for transactions with employees and others providing similar services;
and
■ at the date on which the entity receives the goods or the counterparty renders the
services in all other cases.
29.4.7 The fair value of the equity instruments issued or to be issued should be based on
market prices. The grant date fair value should take into account market vesting conditions
(for example, market prices or reference to an index) but not nonmarket vesting conditions
(for example, service periods). Listed shares should be measured at market price. Options
should be measured:
■ on the basis of the market price of any equivalent traded options;
■ using an option pricing model in the absence of such market prices; or
■ at intrinsic value when the options cannot be measured reliably on the basis of market
prices or on the basis of an option pricing model.
29.4.8 In the rare cases where the entity is required to measure the equity instruments at
their intrinsic value, it remeasures the instruments at each reporting date until final settlement
and recognizes any change in intrinsic value in profit or loss.
29.4.9 The entity should recognize an asset or expense and a corresponding increase in
equity:
■ on grant date if there are no vesting conditions or if the goods or services have already
been received;
■ as the services are rendered if nonemployee services are rendered over a period; or
■ over the vesting period for employee and other share-based payment transactions
where there is a vesting period.