Disclosures on the nature and extent of the arrangements

Learning objectives

• Identify the disclosures about the nature of the arrangements: description, vesting requirements and maximum term.L2

Normative references

• IFRS 2 §44Principle: the entity discloses information that enables users to understand the nature and extent of share-based payment arrangements that existed during the period.
• IFRS 2 §45To give effect to the principle in para. 44, the entity discloses at least: a description of each type of arrangement that existed during the period (general terms and conditions, including vesting requirements, the maximum term of options granted and the method of settlement, with possible aggregation of substantially similar arrangements); the number and weighted average exercise prices of share options outstanding at the beginning of the period, granted, forfeited, exercised, expired, and outstanding and exercisable at the end of the period; the weighted average share price at the date of exercise; and the range of exercise prices and weighted average remaining contractual life of options outstanding.

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

2 questions

• Among the disclosures, the entity describes each type of share-based payment arrangement existing during the period, including its vesting conditions and the maximum term of the options.L2
• Which statements about the disclosure of the nature and extent of share-based payment arrangements are correct? More than one answer is possible.L2