Definition Equity Settled Share Based Payments

The accounting entry depends on the type. A share based payment is a trans ac tion in which the entity receives goods or services either as con sid er a tion for its equity in stru ments or by incurring li a bil i ties for amounts based on the price of the entity s shares or other equity in stru ments of the entity. Ifrs 2 stipulates that an entity shall recognise the goods and services received or acquired in a share based payment transaction when the entity obtains the goods or receives the services.

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Equity settled share based payment transactions are transactions in which the entity receives goods or services in exchange for its own equity instruments e g.

Definition equity settled share based payments. Equity settled share based payment transactions arise when an entity receives goods or services as consideration for its own equity instruments including shares and share options. 10 for equity settled share based payment transactions the entity shall measure the goods or services received and the corresponding increase in equity directly at the fair value of the goods or services received unless that fair value cannot be estimated reliably.

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