IFRS 2 | Share Based Payment | IFRS Lectures | ACCA Exam | International Accounting Course

How does IFRS 2 account for share-based payments? This video explains IFRS 2 share-based payment — equity-settled transactions for employees and non-employees, cash-settled transactions like stock appreciation rights, and choice-of-settlement arrangements — taught by Professor Farhat for CPA candidates and accounting students in advanced accounting and the FAR section. Try it free at farhatlectures.com — interactive exercises, lectures, simulations, cases, multiple choice, and AI tools for CPA, CMA, EA and students. Professor Farhat explains how equity-settled awards to non-employees are measured at the fair value of goods or services received while employee awards use grant-date fair value recognized over the vesting period, and how cash-settled awards create a liability remeasured each period. Video Timeline & Key Concepts: 0:00 — Introduction 5:49 — Equity-settled transactions 6:44 — Non-employee measurement 9:03 — Employee measurement over the vesting period 15:03 — Cash-settled transactions 17:03 — Choice of settlement Frequently Asked Questions: What are the types of share-based payment transactions? The three types are equity-settled, cash-settled, and arrangements with a choice of settlement between cash and equity. How are equity-settled awards to employees measured? Employee equity-settled awards are measured at the grant-date fair value of the equity instrument and recognized as expense over the vesting period. How are awards to non-employees measured? Awards to non-employees are generally measured at the fair value of the goods or services received. How are cash-settled share-based payments accounted for? Cash-settled awards such as stock appreciation rights create a liability that is remeasured to fair value at each reporting date until settlement. What happens with a choice of settlement? When either party can choose cash or equity, the accounting depends on who has the choice and whether a present obligation to settle in cash exists. #CPAexam #CMAexam #enrolledagentexam #accountingcourses #collegecourses #courses #FAR #sharebasedpayment #IFRS2 #stockcompensation #advancedaccounting #ProfessorFarhat