[Paragraphs BC237C-BC237L are added as a consequence of amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions, issued in June 2016.]
BC237C This section summarises the Board’s considerations when finalising its proposals to address the accounting for a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. These changes were proposed in the Exposure Draft Classification and Measurement of Share-based Payment Transactions (Proposed amendments to IFRS 2) published in November 2014 (November 2014 ED).
BC237D The Board was informed that there are situations in which a cash-settled share-based payment is modified by cancelling it and replacing it with a new equity-settled share-based payment, and, at the replacement date, the fair value of the replacement award is different from the recognised value of the original award. Interested parties told the Board
…