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AASB 2 - Share-based Payment

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Text of the Standard 
Summary 
AIFRS compared to IFRS and old AGAAP 
Interpretations and guidance 
Questions and answers 
Articles 

 
Comparison between AASB 2 and IFRS 2 
Comparison by Jeffrey Knapp 
 
Background 
 
AASB 2 ‘Share-Based Payment’ is the Australian equivalent to IFRS 2 of the same name. It was made by the AASB on 15 July 2004 as part the AASB’s program to adopt International Financial Reporting Standards by 2005. 
 
AASB 2 Compared to IFRS 2 
 
Additions 
 
Paragraph Description 
 
Aus 1.1 Which entities AASB 2 applies to, ie. reporting entities and general purpose financial reports. 
 
Aus 1.2 The application date of AASB 2, ie. annual reporting periods beginning 1 January 2005. 
 
Aus 1.3 Prohibits early application of AASB 2. 
 
Aus 1.4 Makes the requirements of AASB 2 subject to AASB 1031 ‘Materiality’. 
 
Aus 1.5 Notice of the new Standard published on 22 July 2004. 
 
 
Deletions 
 
Paragraph Description 
 
53 Transitional provision for equity-settled share-based payment transactions applies to equity instruments granted after 7 November 2002 that had not vested by 1 January 2005. 
 
54 An entity is encouraged to apply IFRS 2 to other grants of equity instruments. 
 
55 Comparatives are required to be restated for all grants of equity instruments to which IFRS 2 is applied – eg. grants after 7 November 2002. 
 
56 Disclosures are required for all grants of equity instruments to which IFRS 2 is not applied – eg. grants before 7 November 2002. 
 
57 Modifications to the terms and conditions of grants of equity instruments are subject to IFRS 2 even if they relate grants to which IFRS 2 is not applied. 
 
58 IFRS 2 is applied retrospectively to liabilities arising from share-based payment transactions existing at 1 January 2005. 
 
59 An entity is encouraged to apply IFRS 2 retrospectively to other liabilities arising from other share-based payment transactions. 
 
60 Effective date of IFRS 2.