Draft issued on share-based payments

News Article - 22 January 2008
Category:

New draft guidance on how a group entity accounts for goods or services received from suppliers has been published by the Accounting Standards Board (ASB).

Amendments to Financial Reporting Standard 20 'Share-based Payment - Group Cash-settled Share-based Payment Transactions' have been made following similar changes issued by the International Accounting Standards Board (IASB) last month.

The IASB clarified that in the situation of how a group entity accounts for suppliers receiving cash payments are linked to the price of the equity instruments of the entity or entity parent, the entity's parent is under obligation to make the payments.

No group entity has any obligation to make cash payments to suppliers, it added.

Following the changes, it has been made clear that the entity should measure the goods or services received by the standards set for cash-settled share-based payment transactions.

The ASB is now proposing to make similar changes to its standards in alignment with the international guidelines.

It requests that any comments on the draft are given by the end of March.

This month, the ASB completed an exposure to a draft on the standard 'Financial Instruments: Recognition and Measurement - Exposures Qualifying for Hedge Accounting'.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »