Share-based Payment IFRS 2

1 IFRS 2 Share-based PaymentIn February 2004 the International Accounting Standards Board (Board) issued IFRS 2 Share-based Payment . The Board amended IFRS 2 to clarify its scope in January 2008 and toincorporate the guidance contained in two related Interpretations (IFRIC 8 Scope of IFRS 2and IFRIC 11 IFRS 2 Group and Treasury Share Transactions) in June June 2016 the Board issued Classification and Measurement of Share-based PaymentTransactions (Amendments to IFRS 2). This amended IFRS 2 to clarify the accounting for (a)the effects of vesting and non-vesting conditions on the measurement of cash-settledshare-based payments; (b) Share-based Payment transactions with a net settlementfeature for withholding tax obligations; and (c) a modification to the terms andconditions of a Share-based Payment that changes the classification of the transactionfrom cash-settled to Standards have made minor consequential amendments to IFRS 2.

2 They includeIFRS 10 Consolidated Financial Statements (issued May 2011), IFRS 11 Joint Arrangements(issued May 2011), IFRS 13 Fair Value Measurement (issued May 2011), Annual Improvements toIFRSs 2010 2012 Cycle (issued December 2013), IFRS 9 Financial Instruments (issued July2014), Amendments to References to the Conceptual Framework in IFRS Standards (issued March2018) and Definition of Material (Amendments to IAS 1 and IAS 8) (issued October 2018).IFRS 2 IFRS FoundationA143 CONTENTS from paragraphINTERNATIONAL FINANCIAL REPORTING STANDARD 2 Share-based PAYMENTOBJECTIVE1 SCOPE2 RECOGNITION7 EQUITY-SETTLED Share-based Payment TRANSACTIONS10 Overview10 Transactions in which services are received14 Transactions measured by reference to the fair value of the equityinstruments granted16 Modifications to the terms and conditions on which equity instrumentswere granted.

3 Including cancellations and settlements26 CASH-SETTLED Share-based Payment TRANSACTIONS30 Treatment of vesting and non-vesting conditions33 ASHARE-BASED Payment TRANSACTIONS WITH A NET SETTLEMENTFEATURE FOR WITHHOLDING TAX OBLIGATIONS33 ESHARE-BASED Payment TRANSACTIONS WITH CASH ALTERNATIVES34 Share-based Payment transactions in which the terms of the arrangementprovide the counterparty with a choice of settlement35 Share-based Payment transactions in which the terms of the arrangementprovide the entity with a choice of settlement41 Share-based Payment TRANSACTIONS AMONG GROUP ENTITIES (2009 AMENDMENTS)43 ADISCLOSURES44 TRANSITIONAL PROVISIONS53 EFFECTIVE DATE60 WITHDRAWAL OF INTERPRETATIONS64 APPENDICESA Defined termsB Application guidanceC Amendments to other IFRSsAPPROVAL BY THE BOARD OF IFRS 2 ISSUED IN FEBRUARY 2004 APPROVAL BY THE BOARD OF AMENDMENTS TO IFRS 2.

4 Vesting Conditions and Cancellations issued in January 2008 Group Cash-settled Share-based Payment Transactions issued in June 2009 Classification and Measurement of Share-based PaymentTransactions (Amendments to IFRS 2) issued in June 2A144 IFRS THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITIONIMPLEMENTATION GUIDANCETABLE OF CONCORDANCEFOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITIONBASIS FOR CONCLUSIONSIFRS 2 IFRS FoundationA145 International Financial Reporting Standard 2 Share-based Payment (IFRS 2) is set outin paragraphs 1 64 and Appendices A C. All the paragraphs have equal in bold type state the main principles. Terms defined in Appendix A arein italics the first time they appear in the Standard.

5 Definitions of other terms are givenin the Glossary for International Financial Reporting Standards. IFRS 2 should be readin the context of its objective and the Basis for Conclusions, the Preface to IFRSS tandards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies,Changes in Accounting Estimates and Errors provides a basis for selecting and applyingaccounting policies in the absence of explicit 2A146 IFRS FoundationInternational Financial Reporting Standard 2 Share-based PaymentObjectiveThe objective of this IFRS is to specify the financial reporting by an entitywhen it undertakes a Share-based Payment transaction. In particular, it requiresan entity to reflect in its profit or loss and financial position the effects ofshare-based Payment transactions, including expenses associated withtransactions in which share options are granted to entity shall apply this IFRS in accounting for all Share-based paymenttransactions, whether or not the entity can identify specifically some or all ofthe goods or services received, including.

6 (a)equity-settled Share-based Payment transactions,(b)cash-settled Share-based Payment transactions, and(c)transactions in which the entity receives or acquires goods or servicesand the terms of the arrangement provide either the entity or thesupplier of those goods or services with a choice of whether the entitysettles the transaction in cash (or other assets) or by issuing equityinstruments,except as noted in paragraphs 3A 6. In the absence of specifically identifiablegoods or services, other circumstances may indicate that goods or serviceshave been (or will be) received, in which case this IFRS applies.[Deleted]A Share-based Payment transaction may be settled by another group entity (ora shareholder of any group entity) on behalf of the entity receiving oracquiring the goods or services.

7 Paragraph 2 also applies to an entity that(a)receives goods or services when another entity in the same group (or ashareholder of any group entity) has the obligation to settle theshare-based Payment transaction, or(b)has an obligation to settle a Share-based Payment transaction whenanother entity in the same group receives the goods or servicesunless the transaction is clearly for a purpose other than Payment for goods orservices supplied to the entity receiving the purposes of this IFRS, a transaction with an employee (or other party)in his/her capacity as a holder of equity instruments of the entity is not ashare-based Payment transaction. For example, if an entity grants all holdersof a particular class of its equity instruments the right to acquire additionalequity instruments of the entity at a price that is less than the fair value ofthose equity instruments, and an employee receives such a right because1233A4 IFRS 2 IFRS FoundationA147he/she is a holder of equity instruments of that particular class, the grantingor exercise of that right is not subject to the requirements of this noted in paragraph 2, this IFRS applies to Share-based Payment transactionsin which an entity acquires or receives goods or services.

8 Goods includesinventories, consumables, property, plant and equipment, intangible assetsand other non-financial assets. However, an entity shall not apply this IFRS totransactions in which the entity acquires goods as part of the net assetsacquired in a business combination as defined by IFRS 3 Business Combinations(as revised in 2008), in a combination of entities or businesses under commoncontrol as described in paragraphs B1 B4 of IFRS 3, or the contribution of abusiness on the formation of a joint venture as defined by IFRS 11 JointArrangements. Hence, equity instruments issued in a business combination inexchange for control of the acquiree are not within the scope of this , equity instruments granted to employees of the acquiree in theircapacity as employees (eg in return for continued service) are within the scopeof this IFRS.

9 Similarly, the cancellation, replacement or other modification ofshare-based Payment arrangements because of a business combination or otherequity restructuring shall be accounted for in accordance with this 3 provides guidance on determining whether equity instruments issuedin a business combination are part of the consideration transferred inexchange for control of the acquiree (and therefore within the scope of IFRS 3)or are in return for continued service to be recognised in the post-combinationperiod (and therefore within the scope of this IFRS).This IFRS does not apply to Share-based Payment transactions in which theentity receives or acquires goods or services under a contract within the scopeof paragraphs 8 10 of IAS 32 Financial Instruments: Presentation (as revised in2003)1 or paragraphs of IFRS 9 Financial IFRS uses the term fair value in a way that differs in some respects fromthe definition of fair value in IFRS 13 Fair Value Measurement.

10 Therefore, whenapplying IFRS 2 an entity measures fair value in accordance with this IFRS, notIFRS entity shall recognise the goods or services received or acquired in ashare-based Payment transaction when it obtains the goods or as theservices are received. The entity shall recognise a corresponding increase inequity if the goods or services were received in an equity-settledshare-based Payment transaction, or a liability if the goods or services wereacquired in a cash-settled Share-based Payment the goods or services received or acquired in a Share-based paymenttransaction do not qualify for recognition as assets, they shall berecognised as title of IAS 32 was amended in 2A148 IFRS FoundationTypically, an expense arises from the consumption of goods or services.