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Top management share appreciation cash bonus


We have a senior management share appreciation cash bonus plan where senior managers with at least 5 years service are given a cash bonus if the market share is increased by at least 5% during the year. Does this come under IFRS 2 - share based payments?

asked Mar 17, 2013 in IFRS 2 - Share-based Payment by anonymous
retagged Apr 23, 2013 by Visio

1 Answer

0 votes
Yes since the bonus is calculated with reference to the share price, it is treated as a cash-settled share-based payment under IFRS 2. This is applicable even if the payment is made under a bonus or profit-sharing plan.

If the bonus is not calculated by reference to an entity’s share price (such as those based on the
revenue or profits of the employer entity), or not settled using equity instruments of the group, then you should apply IAS 19 - Employee benefits.
answered Apr 9, 2013 by JaneM Level 2 Member (4,320 points)


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