Other parties: the rebuttable presumption

Learning objectives

• Explain the rebuttable presumption that the fair value of the goods or services can be estimated reliably and the associated measurement date.L2
• Assess whether the presumption is rebutted in a case in which the goods or services are not identifiable.L3

Normative references

• IFRS 2 §10For an equity-settled transaction, the entity measures the goods or services received, and the corresponding increase in equity, directly at the fair value of the goods or services received, unless that fair value cannot be estimated reliably; it then measures them by reference to the fair value of the equity instruments granted.
• IFRS 2 §13For transactions with parties other than employees, there is a rebuttable presumption that the fair value of the goods or services received can be estimated reliably; it is measured at the date the entity obtains the goods or the counterparty renders the service. In rare cases, if the presumption is rebutted, the goods or services and the increase in equity are measured indirectly by reference to the fair value of the equity instruments granted, measured at that same date.
• IFRS 2 §13AIf the identifiable consideration received (if any) appears to be less than the fair value of the equity instruments granted or the liability incurred, this typically indicates that other, unidentifiable, goods or services have been (or will be) received: the identifiable goods or services are measured in accordance with the Standard, and the unidentifiable ones as the difference between the fair value of the share-based payment and that of the identifiable goods or services, at the grant date (the liability of a cash-settled transaction being remeasured at each reporting date until settled).

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

2 questions

• Brisa SA settles in shares a firm of architects for plans delivered on dates spread over the year; the fair value of the plans delivered can be estimated reliably (case assumption). How does Brisa measure these services?L2
• Two situations of Delta SA, which settles in shares with parties other than its employees. Situation A: a training body gives sessions each quarter, and public rates exist for comparable sessions. Situation B: an expert receives shares for specific research work, delivered over the year, with no market equivalent or comparison price, so that its fair value cannot be estimated reliably (case facts). Write an assessment note: is the presumption of reliable estimation rebutted in each situation, and what measurement basis follows?L3