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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Share option
Hello Sir,how will the subsidiary CO & their FS account for the share option grant by the parent Co to the subsidiary’s employee?
Sub will make the IFRS 2 charge that would normally have made by the parent.
And, before you ask me, what happens on exercise…………I’m sure it would be very messy!
The question is why the parent Co grant to the employee of the subsidiary will recognise by the subsidiary Co instead of Parent Co FS? is that not the expense for the Parent Co that incurred?
This is a requirement of IFRS 2.
I think it is quite logical. The objective of IFRS2 is to ensure that an expense is recorded in the profit loss account of the company for which the employee is working