1. For MODIFICATION of equity based settlement, if the "FV of the ORIGINAL equity instrument" larger than the "FV of NEW equity instrument", the standard say the original FV of the equity instrument should be expensed as IF the modification NEVER OCCURRED. What does this mean? Is it we can ignore the modification and expense as usual? If yes, what is the reason? As a transaction is already occurred, how can we ignore it?
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IFRS 2 ( Equity Based Settlement)
9y ago#1Hi,
It means that even though there has been a modification that we continue with the treatment prior to the modification and don't update the share based payment scheme. I suppose the reasoning is that it wouldn't be prudent to adjust for a lower fair value.
Thanks
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