Group transactions: the entity receiving the services

Learning objectives

• Determine the classification of a group award in the financial statements of the entity receiving the services.L3, L4

Normative references

• IFRS 2 §43AFor share-based payment transactions among group entities, the entity receiving the goods or services, in its separate or individual financial statements, measures them as equity-settled or cash-settled by assessing the nature of the awards granted and its own rights and obligations; the amount it recognises may differ from that recognised by the consolidated group or by another group entity settling the transaction.
• IFRS 2 §43BThe entity receiving the goods or services measures them as an equity-settled transaction when the awards granted are its own equity instruments or when it has no obligation to settle; it subsequently remeasures it only for changes in non-market vesting conditions. In all other circumstances, it measures it as a cash-settled transaction.

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

1 question

• Mère SA grants options over Mère's shares to employees of its subsidiary Fille SA, which Mère will deliver itself. Fille receives the services of those employees, with no obligation to deliver securities or to pay (case facts). How does Fille treat the award in its separate financial statements?L3