Fair value of a share-based payment (IFRS 2)

IFRS 2 specifies what is measured and when for share-based payment transactions; the applicable requirements depend on the transaction and whether it is equity-settled or cash-settled. An option’s intrinsic value is the excess of the underlying share price over the exercise price, if positive; it does not generally capture time value and is not automatically the option’s fair value. IFRS 2 has its own measurement requirements; the IFRS 13 exit-price definition is not automatically substituted.