ANNEXU.K.INTERNATIONAL ACCOUNTING STANDARDS

INTERNATIONAL FINANCIAL REPORTING STANDARD 2Share-based payment

Appendix BApplication Guidance

[F1Accounting for a modification of a share-based payment transaction that changes its classification from cash-settled to equity-settled U.K.
B44A If the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Specifically: U.K.
(a)

The equity-settled share-based payment transaction is measured by reference to the fair value of the equity instruments granted at the modification date. The equity-settled share-based payment transaction is recognised in equity on the modification date to the extent to which goods or services have been received.

(b)

The liability for the cash-settled share-based payment transaction as at the modification date is derecognised on that date.

(c)

Any difference between the carrying amount of the liability derecognised and the amount of equity recognised on the modification date is recognised immediately in profit or loss.

B44B If, as a result of the modification, the vesting period is extended or shortened, the application of the requirements in paragraph B44A reflect the modified vesting period. The requirements in paragraph B44A apply even if the modification occurs after the vesting period. U.K.
B44C A cash-settled share-based payment transaction may be cancelled or settled (other than a transaction cancelled by forfeiture when the vesting conditions are not satisfied). If equity instruments are granted and, on that grant date, the entity identifies them as a replacement for the cancelled cash-settled share-based payment, the entity shall apply paragraphs B44A and B44B.] U.K.

Textual Amendments