ImportantIntermediate

The boundaries of the scope: IAS 19, IAS 32, IFRS 9 and business combinations

Learning objectives

Identify the transactions excluded from the scope of IFRS 2 or governed by another Standard.L2
Distinguish a cash bonus within IAS 19 from a bonus calculated on the share price within IFRS 2.L2

IFRS 2 §5Goods include inventories, consumables, property, plant and equipment, intangible assets and other non-financial assets. The Standard does not apply to goods acquired as part of the net assets acquired in a business combination as defined in IFRS 3, in a combination of entities or businesses under common control, or on the contribution of a business on the formation of a joint venture: equity instruments issued in exchange for control of the acquiree fall outside it. However, equity instruments granted to employees of the acquiree in their capacity as employees (for example in return for continued service) fall within it, as do the cancellation, replacement or modification of arrangements because of a business combination; IFRS 3 helps to distinguish consideration for control from remuneration for post-combination service.
IFRS 2 §6The Standard does not apply to transactions in which the entity receives or acquires goods or services under a contract within IAS 32 paras. 8 to 10 or IFRS 9 paras. 2.4 to 2.7, i.e. contracts to buy or sell non-financial items that can be settled net, except for those entered into and held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity's expected purchase, sale or usage requirements (exception set out in IAS 32 para. 8 and IFRS 9 para. 2.4).

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