BC362 Respondents to the ED thought that clarity could be further improved in IFRS 2 by defining a ‘non-vesting condition’.

BC363 The Board noted that there is no formal definition of non-vesting condition in IFRS 2, but Implementation Guidance on the split between vesting and non-vesting conditions is provided in a flowchart in paragraph IG24 of IFRS 2.

BC364 The Board determined that the creation of a stand-alone definition of non-vesting condition would not be the best alternative for providing clarity on this issue. This is because the Board observed that the concept of a non-vesting condition can be inferred from paragraphs BC170-BC184 of IFRS 2, which clarify the definition of vesting conditions. In accordance with this guidance it can be inferred that a non-vesting condition is any condition that does not determine whether the entity receives the services that entitle the counterparty to receive cash, other assets or equity instruments of the entity under a share-based payment arrangement. In other words, a non-vesting condition is any condition that is not a vesting condition. On the basis of its analysis the Board decided to not add a definition of non-vesting condition.