Insights into PFRS 2: Presentation and disclosure of share-based payment transactions
Share-based payments have become increasingly popular over the years, with many entities using equity instruments or cash and other assets based on the value of equity instruments as a form of payment to directors, senior management, employees and other suppliers of goods and services.
While the general accounting principles have remained largely unchanged since the introduction of PFRS 2 ‘Share-based Payment’ in 2004, share-based payments is an area that is not well understood in practice and entities often have difficulty in applying the requirements to increasingly complex and innovative share-based payment arrangements.
Our ‘Insights into PFRS 2’ series is aimed at demystifying PFRS 2 by explaining the fundamentals of accounting for share-based payments using relatively simple language and providing insights to help entities cut through some of the complexities associated with accounting for these types of arrangements. This new article provides a summary of the PFRS 2 presentation and disclosure requirements for share-based payments, along with example disclosures.
The full publication is accessible and downloadable through the file below.
The previous releases in this series, which provide foundational discussions and key concepts under PFRS 2, are available below:
