CERTYNEX IFRS ACADEMY

A colleague writes: "IFRS 2 covers option plans reserved for executives; shares given to a supplier in return for its services are not covered." What is the error in this reasoning?

She forgets that option plans fall within the standard from the time executives exercise them.

She confuses share-based payment with a post-employment benefit, which is specific to employees, an area dealt with by another standard than the one on share-based payments.

She wrongly classifies the shares given to the supplier among cash-settled transactions.

She limits the scope to executives, whereas equity instruments given to a supplier for its services are covered too.