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: August 19, 2023
3 Reviews (10 ratings)


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
There were typos in the materials and test questions that need to be corrected

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
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: 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 .
Instructor for this course
Course Syllabus
  Introduction to Share-Based Payments under IFRS (IFRS 2)2:43
  Objective and Application 3:28
  Definitions 13:02
Certain Criterias
  Equity-Settled Share-Based Payment Transactions1:20
  Transactions with Employees and Non-Employees2:11
  Goods or Services Measured by Fair Value of Equity Instruments Granted1:18
  Equity Instruments Granted Based on Market Prices1:54
  Share Based Payment Transactions1:04
  Disclosure Requirements0:56
Transactions and TREATMENTS
  Equity Settled Transactions7:52
  Transactions with Services Received4:56
  Fair Value of Equity Instruments Granted1:36
  Treatment of Vesting Conditions5:33
  Treatment of Non-Vesting Conditions1:24
  Treatment of a reload feature1:00
  After vesting date1:30
  If No Reliable Estimation3:04
  Modification of Terms and Conditions2:40
  Cancellations and Settlements5:58
  Cash Settled Transactions6:25
  Counterparty with Choice of Settlement4:05
  Share-Based Payments under IFRS (IFRS 2)1:19:23
  Slides: Share-Based Payments under IFRS (IFRS 2)PDF
  Share-Based Payments under IFRS (IFRS 2) Glossary/ IndexPDF