News Article - 06 November 2006
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New guidelines have been issued by the International Financial Reporting Interpretations Committee (IFRIC) setting out how businesses should implement share-based payments under International Financial Reporting Standards (IFRS) 2.

The rules of IFRIC 11 highlight how IFRS 2 should be applied to either treasury or group payments in accordance with a company's equity arrangements, as well as providing advice on whether payment deals should be recorded as equity-settled or cash settled in accounts books.

Robert Garnett, chairman of IFRIC, said: "IFRIC 11 will be welcomed by companies applying IFRS 2, because it gives helpful guidance on how share-based payment transactions involving an entity's own equity instruments or equity instruments of another entity in the same group should be accounted for."

The new guidelines take into account factors such as the differences in applying the IFRS to a company's own equity arrangements or a parent business' equity instruments.

Last month IFRIC undertook its largest project into service concession arrangements with the aim of clarifying the implementation of guidelines set by the International Accounting Standards Board.

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