Grant date
IFRS 2 uses grant-date fair value in measuring many equity-settled employee awards. Determine when required approvals and shared understanding exist; an internal proposal or informal announcement is not necessarily the grant date. The vesting period, over which required service is received, may begin at a different date depending on the facts.
Worked example
A board approves an employee option award on 1 March, but employees are informed and accept the agreed terms on 1 April. Assuming all other agreement conditions are met on 1 April, that is the grant date.
Common mistake
Using the date employees exercise options as grant date or assuming an unapproved management proposal is an agreed award.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |