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Sir,
What makes a difference between Equity financial instrument and equity share base payment(with persons who are not employees). A Please clarify me.Thank you
Hi,
Equity share based payments would only be for employees or for the exchange of any other goods (purchase of inventory) or services (consultancy advice) to/from external parties. The issue in IFRS 2 is with regards the measurement of fair value. IFRS 2 provides the detail of how to measure fair value of the equity based share based payment.
Equity financial instruments are where shares are issued to shareholders (new/existing) in return for cash or as part of a bonus issue. Here we know how much the shareholders pay for the shares and that the bonus issue of shares is done at nominal value.
Thanks
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