Insights into PFRS 2 - Share-based payment transactions with non-employees
Share-based payment transactions with non-employees involve compensating parties other than employees such as suppliers of goods and services. These transactions require careful accounting to measure and recognize the fair value of goods or services received, with different approaches depending on the method of the settlement.
PFRS 2 ‘Share-based payment’ is not a new Standard, however arrangements involving such transactions are becoming increasingly complex. As such, reporting entities often have difficulties in applying the Standard to their particular 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 discusses the accounting for share-based payments with non-employees.
The full publication is accessible and downloadable through the file below.
The previous releases in this series, namely ‘Insights into PFRS 2: What is PFRS 2?’ and ‘Insights into PFRS 2: Classification of share-based payment transactions and vesting conditions’, are available in the Accounting Alert released on January 22, 2024:
