What are the disclosure requirements under IFRS 2?

Disclosure. Required disclosures include: the nature and extent of share-based payment arrangements that existed during the period. how the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period was determined.

What is aasb2?

AASB 2. Share-based Payment. This compiled Standard applies to annual periods beginning on or after 1 January 2018. Earlier application is permitted for annual periods beginning after 24 July 2014 but before 1 January 2018. It incorporates relevant amendments made up to and including 12 December 2017.

What is the objective of IFRS 2?

The Objective of IFRS 2 is to specify the financial reporting by an entity when it undertakes a share based payment transaction.

What are non market performance conditions?

If the vesting conditions are performance conditions, the approach to recognition depends on whether these are market or non-market targets. Non-market conditions (e.g. specified minimum revenue growth of the entity for next 3 years) are treated similarly to service conditions (see above).

How do you audit share-based payments?

Principal audit procedures – measurement of share-based payment expense

1. Obtain management calculation of the expense and agree the following from the calculation to the contractual terms of the scheme:
2. Recalculate the expense and check that the fair value has been correctly spread over the stated vesting period.

Which accounting standard is applicable for revenue recognition?

The revenue recognition standard, ASC 606, provides a uniform framework for recognizing revenue from contracts with customers.

Why is equity not remeasured?

Equity instruments are not remeasured. Equity dividends are paid at the discretion of the entity and are accounted for as reduction in the retained earnings, so have no effect on the carrying value of the equity instruments.

How is goodwill measured in a business combination?

In simple terms, goodwill is measured as the difference between: the consideration paid plus any NCI, and. the acquisition–date fair value of identifiable net assets acquired.

Which is a basic purpose of the conceptual framework?

The primary purpose of the Conceptual Framework was to assist the IASB in the development of future IFRSs and in its review of existing IFRSs. The Conceptual Framework may also assist preparers of financial statements in developing accounting policies for transactions or events not covered by existing standards.

What does cliff vesting mean?

Cliff vesting is the process by which employees earn the right to receive full benefits from their company’s qualified retirement plan account at a specified date, rather than becoming vested gradually over a period of time.

What are the two types of share-based payments?

Share-based payment transactions are of 3 types – equity-settled, cash-settled, and optionally-settled. A transaction is equity-settled where the entity receives goods/services that are settled by issuing equity instruments (that is, shares or share options).

What is AASB 2 share-based payment?

AASB 2 Share-based Paymentas amended incorporates IFRS 2 Share-based Paymentas issued and as amended by the International Accounting Standards Board (IASB). Australian-specific paragraphs (which are not included in IFRS 2) are identified with the prefix “Aus” or “RDR”.

When does accounting standard AASB 1054 apply?

The Australian Accounting Standards Board made Accounting Standard AASB 1054 Australian Additional Disclosuresunder section 334 of the Corporations Act 2001on 11 May 2011. This compiled version of AASB 1054 applies to annual periods beginning on or after 1 January 2020 but before 1 July 2021 that end on or after 30 June 2020.

What is AASB 1054 Australian additional disclosures?

Australian Accounting Standard AASB 1054 Australian Additional Disclosures (as amended) is set out in paragraphs 1 – 17. All the paragraphs have equal authority. Paragraphs in bold type state the main principles.