[Paragraphs BC22A-BC22G are added as a consequence of Group Cash‑settled Share‑based Payment Transactions (Amendments to IFRS 2) issued in June 2009.]

BC19 In some situations, an entity might not issue shares or share options to employees (or other parties) direct. Instead, a shareholder (or shareholders) might transfer equity instruments to the employees (or other parties).

BC20 Under this arrangement, the entity has received services (or goods) that were paid for by its shareholders. The arrangement could be viewed as being, in substance, two transactions-one transaction in which the entity has reacquired equity instruments for nil consideration, and a second transaction in which the entity has received services (or goods) as consideration for equity instruments issued to the employees (or other parties).

BC21 The second transaction is a share‑based payment transaction. Therefore, the Board concluded that the entity should account for transfers of equity instruments by shareholders to employees or other parties in the same way as other share‑based payment transactions. The Board reached the same conclusion with respect to transfers of equity instruments of the entity’s parent, or of another entity within the same group as the entity, to the entity’s employees or other suppliers.