The Institute lodged its submission on ED 161, Proposed Amendments to AASB 2 Share-based Payment and AASB Interpretation 11 AASB 2 – Group and Treasury Share Transactions: Group and Treasury Share Transactions, with the Australian Accounting Standards Board (AASB) and International Accounting Standards Board (IASB).  
 
The Institute supports the amendments, but suggest that AASB/IFRS 2 would benefit from being redrafted to focus on the principles. 
 
ED 161 provides guidance on how a group entity, that receives goods or services from its suppliers which are linked to the price of the equity instruments of either the entity or its parent, should account for these transactions where it is the parent entity and not the entity itself that is obligated to make the required cash payments to the entity’s suppliers. 
 
The submission is available for download here (pdf). 
 
This article was taken from ANT07/2008 and is current up to 29 February 2008