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Version date: 26 February 2020 - onwards
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Whether a performance target can be set by reference to the price (or value) of another entity (or entities) that is (are) within the group (paras. BC337-BC338)

BC337 The Board decided to clarify that within the context of a share-based payment transaction that involves entities in the same group, a performance target can be defined by the price (or value) of the equity instruments of another entity in that group. This amendment is consistent with the guidance in paragraphs 3A and 43A-43D of IFRS 2. Paragraph 3A, which provides guidance about the scope of IFRS 2, states that “a share-based payment transaction may be settled by another group entity (or a shareholder of any group entity) on behalf of the entity receiving or acquiring the goods or services”.

BC338 The Board decided to make a similar amendment to the definition of market condition to indicate that a market condition can be based on the market price of the entity’s equity instruments or the equity instruments of another entity in the same group.

Comparing proposed amendment...