Share Based Payments

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Share Based Payments are consider in IFRS2

The purpose of the standard is to ensure that equity settled share based payments, cash settled share based payments and optional share based transactions are recorded in the accounts according to the measurement criteria included in the standard.

Therefore, this applies to you if you buy good or services and you pay for those goods or services by:

  • giving equity instruments of your entity to the supplier
  • incurring a liability to the supplier which is based on the entities shares or another equity instrument
  • either you or your supplier has a choice to settle the transaction in cash or by issuing equity instruments

An equity instrument is a contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities

This standard applies to you in the measurement of the transaction when you enter in to it, and disclosures subsequent to any (and every) transaction. This is not a disclosure required in the face of the financial statements and as such only impacts on Adempiere in the respect that a transaction or general ledger journal will need to be constructed in accordance with the standard if such a transaction occurs.

Summary

Adempiere is compliant with IFRS2 to the extent that it allows the user to record IFRS2 transactions measured in accordance with the standard by way of journal entries.

Michael Judd, 2 July 2008

n.b. If you have any specific requirements in regards to IFRS2 please do not hesitate to get in contact with me for further clarification.