Instructor for this course

Companies often grant shares or share options to employees, directors, senior executives, or other parties such as suppliers and providers of professional services. The popularity of share plans and share option plans has made it imperative that accounting professionals understand how to account for share-based payment transactions.

The objective of IFRS 2 is to specify the financial reporting by an entity when it undertakes a share-based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in which share options are granted to employees. IFRS 2 prescribes various disclosure requirements to enable users of financial statements to understand:

  1. The nature and extent of share-based payment arrangements that existed during the period.
  2. How the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period was determined.
  3. The effect of share-based payment transactions on the entity’s profit or loss for the period and on its financial position.

Course Key Concepts: IFRS, IAS 1, Principles, Clarity, Reliability, Relevance, Comparability, Presentation, Financial Statements, Notes, Profit-or-Loss Statement, Share-based, Equity.

Learning Objectives

  • Explore the accounting for group cash-settled share-based payments in the corporate financial statements.
  • Identify the equity-settled share-based payment transactions.
  • Discover the cash-settled share-based payment transactions.
  • Recognize the transactions in which the entity receives or acquires goods or services.
  • Explore about receiving the goods or services when that entity has no obligation to settle.
  • Discover the recognition and fair value measurement rules.
  • Identify the effect of vesting on accounting, classifying and reporting.
  • Discover the disclosure requirements.
  • Explore the financial statement presentation.
Last updated/reviewed: May 9, 2022

2 Reviews (5 ratings)Reviews

Anonymous Author
Provides good overview of the ifrs treatment of share based payments. There were no calculation examples, just a read through of the rules.
Anonymous Author
It was good to learn about share-based payments under IFRS 2.


Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  2:43Introduction to Share-Based Payments under IFRS (IFRS 2)
  3:28Objective and Application
Certain Criterias
  1:20Equity-Settled Share-Based Payment Transactions
  2:11Transactions with Employees and Non-Employees
  1:18Goods or Services Measured by Fair Value of Equity Instruments Granted
  1:54Equity Instruments Granted Based on Market Prices
  1:04Share Based Payment Transactions
  0:56Disclosure Requirements
Transactions and TREATMENTS
  7:52Equity Settled Transactions
  4:56Transactions with Services Received
  1:36Fair Value of Equity Instruments Granted
  5:33Treatment of Vesting Conditions
  1:24Treatment of Non-Vesting Conditions
  1:00Treatment of a reload feature
  1:30After vesting date
  3:04If No Reliable Estimation
  2:40Modification of Terms and Conditions
  5:58Cancellations and Settlements
  6:25Cash Settled Transactions
  4:05Counterparty with Choice of Settlement
  1:19:23Share-Based Payments under IFRS (IFRS 2)
  PDFSlides: Share-Based Payments under IFRS (IFRS 2)
  PDFShare-Based Payments under IFRS (IFRS 2) Glossary/ Index