Share-based payment
A share-based payment transaction involves an entity receiving goods or services in exchange for equity instruments or amounts based on the value of its equity instruments, under IFRS 2. Equity-settled and cash-settled transactions have different classification and subsequent measurement requirements.
Worked example
Employees receive share options that vest after three years; the auditor evaluates the valuation and expense recognised over the relevant period.
Common mistake
Do not credit equity for every arrangement: a cash-settled share-based payment generally gives rise to a liability.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |