Comparison between U.S. GAAP and International ... - Grant Thornton

Comparison between U.S. GAAP and International Financial Reporting Standards 91
IFRS
condition shall be taken into account when estimating
the fair value of equity instruments granted. An entity
shall recognise the goods or services received from the
counterparty over the vesting period for grants of equity
instruments with non-vesting conditions. If the nonvesting
condition is not met and neither the counterparty
nor the entity can choose whether the condition is met,
the entity continues to recognise expense over the
remainder of the vesting period (IFRS 2.21A and
IFRS 2, IG24). However, if either the entity or
counterparty can choose whether a non-vesting
condition is met, failure to meet that non-vesting
condition is to be treated as a cancellation (IFRS 2.28A
and IFRS 2, IG15A). The cancellation is accounted for
as an acceleration of vesting. The amount that would
otherwise have been recognised for services received
over the remainder of the vesting period is expensed
(IFRS 2, IG24).
U.S. GAAP
impact of a non-vesting condition shall be taken into
account when estimating the fair value of equity
instruments granted similar to IFRS (ASC 718-10-25-13).
Payroll taxes and share-based awards
Payroll tax expense shall be recognised over the same
period as the share-based payment expense.
Unlike IFRS, payroll tax expense shall be recognized as
an expense on the date triggering the measurement and
payment of the tax (generally, the exercise date for
options and vesting date for stock grants)
(ASC 718-10-25-22).
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