BC268P When it developed the consensus in IFRIC 11, the IFRIC noted that some share‑based payment arrangements involve a parent granting rights to the employees of more than one subsidiary with a vesting condition that requires the employees to work for the group for a particular period. Sometimes, an employee of one subsidiary transfers employment to another subsidiary during the vesting period, without the employee’s rights under the original share‑based payment arrangements being affected.

BC268Q The IFRIC noted that the terms of the original share‑based payment arrangement require the employees to work for the group, rather than for a particular group entity. Thus, the IFRIC concluded that the change of employment should not result in a new grant of equity instruments in the financial statements of the subsidiary to which the employees transferred employment. The subsidiary to which the employee transfers employment should measure the fair value of the services received from the employee by reference to the fair value of the equity instruments at the date those equity instruments were originally granted to the employee by the parent. For the same reason, the IFRIC concluded that the transfer itself should not be treated as an employee’s failure to satisfy a vesting condition. Thus, the transfer should not trigger any reversal of the charge previously recognised in respect of the services received from the employee in the separate or individual financial statements of the subsidiary from which the employee transfers employment.