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ZzorrizSupporter6y ago
Hello Sir,how will the subsidiary CO & their FS account for the share option grant by the parent Co to the subsidiary’s employee?
stephenwidbergstephenwidbergTutor6y ago#1
Sub will make the IFRS 2 charge that would normally have made by the parent. And, before you ask me, what happens on exercise............I'm sure it would be very messy!
ZzorrizSupporter6y ago#2
The question is why the parent Co grant to the employee of the subsidiary will recognise by the subsidiary Co instead of Parent Co FS? is that not the expense for the Parent Co that incurred?
stephenwidbergstephenwidbergTutor6y ago#3
This is a requirement of IFRS 2. I think it is quite logical. The objective of IFRS2 is to ensure that an expense is recorded in the profit loss account of the company for which the employee is working https://library.croneri.co.uk/cch_uk/dgaap/b26-8-2
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