IFRS 2Chapter 2Lesson 1
Recognising: when the services are received, against equity or a liability
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Goods or services received are recognised as they are received, as an asset or an expense; the credit side is an increase in equity if the entity hands over instruments, a liability if it pays in cash.
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Learning objectives
- Explain that goods or services received are recognised when received, not on the payment date or when options are exercised.
- Record a grant of immediately vested instruments in exchange for services already rendered.
- Distinguish the equity credit from the liability credit and post the expense of the period for each settlement method.