Blogging Employee Benefits

February 20, 2006

IASB Proposes Changes to Stock Compensation Accounting

Filed under: Accounting, IASB, Stock Compensation — Fuguerre @ 11:28 am

The International Accounting Standards Board has proposed changes to international accounting rules relating to two common aspects of stock compensation. [Exposure Draft of Proposed Amendments to IFRS 2 Share-based Payment: Vesting Conditions and Cancellations; Press Release, 2/2/06] The two issues were previously considered by the International Financial Reporting Interpretations Committee, which was unable to reach a consensus.

  • Vesting Conditions – The proposed change clarifies that only service conditions and performance conditions constitute vesting conditions.
  • Cancellations – The proposed change clarifies that cancellations by parties other than the accounting entity are to be accounted for in the same way as cancellations by the entity.

The proposed amendments are to apply for annual periods beginning on or after 1/1/2007. Comments on the proposed changes should be submitted to the IASB by 6/2/2006.


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