Link with IFRS 2

Learning objectives

• Explain the link with IFRS 2 for employee share options.L3

Normative references

• IAS 33 §47AFor share options and other share-based payment arrangements to which IFRS 2 applies, the issue price and the exercise price used in the diluted calculation include the fair value (measured in accordance with IFRS 2) of any goods or services to be supplied to the entity in the future under the arrangement.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Share options granted to employees and accounted for under IFRS 2 are excluded from the calculation of diluted earnings per share merely because they fall under IFRS 2.L3