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PRANTO ROY MD DELOWAR SHUVO DEY MD RAJU NASIRUDDIN
BBA18003 HOSSAIN BBA18022 SARKER BBA17033
BBA18024 BBA18055
IFRS -2 Share-based Payment
Pranto Roy
ID: BBA 18003
Overview
IFRS 2 Share-based Payment requires an entity to recognize share-based payment transactions
(such as granted shares, share options, or share appreciation rights) in its financial statements,
including transactions with employees or other parties to be settled in cash, other assets, or
equity instruments of the entity.
Definition of share-based payment
A share-based payment is a transaction in which the entity receives goods or services either as
consideration for its equity instruments or by incurring liabilities for amounts based on the price
of the entity's shares or other equity instruments of the entity.
Objectives
To specify the financial reporting by an entity when it undertakes a share-
based payment transaction.
Share Based Arrangements
Cash & other Assets Equity instruments
Based on the Including
Price/value of equity Instrument Share / Share option
Cash settled Equity settled
Vesting condition met ?
Scope
The standard recognizes and addresses three types of transactions according to the method
of settlement.
Equity-settled share-based payment transaction: The entity receives or services in exchange for equity
instruments of the entity (goods including shares or share options).
Cash-settled share-based payment transaction: The entity receives goods or services in exchange for amounts
of cash that are based on the price (or value) of the entity’s shares or other equity instruments of the entity.
Transactions with a choice of settlement: The entity receives goods or services and either the entity or the
supplier has a choice as to whether the entity settles the transaction in cash (or other assets) or by issuing equity
instruments.
The following are outside the scope of IFRS 2.
Transactions with employee and others In their capacity as a holder of equity instrument of the entity (for
example, where an employee receives additional in rights to all shareholders)
The issue of equity instruments in exchange for control of another entity in a business combination
Key Definition
Grant date: The date at which the entity and other party agree to the share-based payment
arrangement. At this date, the entity agrees to pay cash, other assets or equity instruments to
the other party, provided that specified vesting conditions, if any are met . If the agreement
is subject to shareholder approval, then the approval date becomes the grant date.
Key Definition
Vesting condition: The conditions that must be satisfied for the other
party to become entitled to receive the share-based payment.
Vesting period: The period during which the vesting conditions are to
be satisfied.
Vesting date: The date on which all vesting conditions have been met
and the employee/third party becomes entitles to the share-based
payment.
Recognition of share-based payment
With cash
Equity Settled Cash Settled
alternative
Equity component
Fair value grant day Fair value each balance sheet (Measure at grant date only)
date Cash component
only
(Measure at each balance
sheet)
Changes in fair value in P&L Changes if fair value
No change in fair value follow split
until exercise
Equity-settled share-based payment
transaction
If goods or services are received in exchange for shares or share option, the
transaction is accounted by:
DEBIT Expense/asset
CREDIT Equity
We must next consider:
a) Measurement of the total expense taken to profit or loss
b) When this expense should be recorded
The impact od different types of vesting condition
Disclosure
To understand the nature and extent of the share based payment that
existed during the period
To under stand the FV of the good /service received against the
equity instruments granted to the vendor
To understand effect of expenses from share based transaction on
the income statement
Md. Delowar Hossain
ID: BBA 18024
Department of Accounting
Mawlana Bhashani Science & Technology University
Disclosure
Disclosure of information about current business combinations:
• Name and a description of the acquire.
• Primary reasons for the business combination and a description of how the acquirer
obtained control of the acquire.
• Description of the factors that make up the goodwill recognized.
Disclosure of information about adjustments of past business combinations:
• Follow-up information on contingent consideration.
• Follow-up information about contingent liabilities recognised in a business
combination.
Application of IFRS-03 Robi Axiata Limited.
Notes from IFRS-03 Robi Axiata Limited.
Application of IFRS-03 in Airtel Limited.
Application of IFRS-03 in Beximco Pharmaceuticals Ltd.
Notes from IFRS-03 in Beximco Pharmaceuticals Ltd.
Application of IFRS-03 in Beacon Pharmaceuticals Ltd.
Notes from IFRS-03 in Beacon Pharmaceuticals Ltd.
Md. Raju Sarker
BBA18055
IFRS 7
Financial Instruments: Disclosures
Name : Shuvo Dey
ID: BBA 18022
Significance of Financial Instruments
Statement of Financial Position Statement of Comprehensive Income
Categories of FA and FL Gain/Losses for each category
Reclassification of FA and FL
Interest income and Interest
Allowance for credit loss
expense
Loans payable
Fee income and Expense
Significance of Financial Instruments
Other disclosures
Accounting Policies: Hedge Accounting:
Trade date vs Settlement Risk Management Strategy
date Future cash flows
(Amount, Timing,
Uncertainty)
Fair Values:
Effect of hedge accounting
Fair value for each class of on FS
FA, FL
How FV was determined
IFRS 10
Consolidated Financial Statements
Presented By
Md. Nasir Uddin
Id: bba17033
What is IFRS 10?
• Introduction
“The Accounting Standards IFRS 10 sets the rules for preparing
and presenting consolidated financial statements when an entity
controls one or more other entities.”
Background of IFRS 10
2001
IAS 27 Consolidated Financial Statement and Accounting for investment in subsidiaries.(Issued)
2003
IAS 27 Consolidated and Separate Financial Statements.(Renamed)
2011
IAS 27 Separate Financial Statements. IFRS 10 Consolidated Financial Statements.
IFRS 10 was amended in 2012 and applied from 1
Jan 2013.
IFRS 10 Consolidated Financial Statements
Establish principles for the presentation and preparation of
Objectives consolidated financial statements when an entity controls one or
more entities.
Consolidated Financial
Control Accounting Requirements Investment entities
Statements
Control
An investor controls an investee when:
Is exposed or has rights to variable returns from its
involvement in investee.(Subsidiary)
Has the ability to affect those returns.
Though its power over the investee.
Power Existing rights that give the current ability to affect the relevant activities of investee.
Consolidated Financial Statements
The financial statements of a group presented as those of a single
economic entity.
Parent Subsidiary Group
Separate FS Separate FS Consolidated FS
Consolidation procedures + Accounting Requirements
IFRS 10 Accounting requirements
Consolidation Procedures
Step-1
Combine like items of assets, liabilities, equity, income, expense
and cash flow of the parent with those of its subsidiaries.
Carrying amount of parent’s investment in subsidiary.
Step-2 Offset (eliminate):
Parent’s portion of equity of each subsidiary.
Step-2 Offset (eliminate) items related to intragroup transactions.
Example:
Large Ltd. Has owned 100% shares of small
limited since small’s incorporation. Beside there
are Statement of Financial Positions of both Large
and Small at 31 December 2014.
Prepare consolidate Statement of Financial Position
of Large Group as at 31 December 2104.
IFRS 10 exception: Investment entities
Applicable 1 January 2014
Obtains Funds from investors = Investment management service
Investment entity
Measure performance of investment on a fair value basis
Business purpose = to invest funds for returns
Characteristics:
> One Investment > One investor Investor ≠ Related parties Ownership = Equity
