The International Accounting Standards Board (IASB) announced on November 2, 2006, that the International Financial Reporting Interpretation Committee (IFRIC) released an Interpretation-IFRIC 11 IFRS2- “Group and Treasury Share Transactions”. Moreover, the Interpretation addresses how to apply IFRS 2 Share-based Payment to share-based payment arrangements involving an entity’s own equity instruments or equity instruments of another entity in the same group.
Robert Garnett, IASB Member and Chairman of IFRIC,pointed out, “IFRIC 11 will be welcomed by companies applying IFRS 2, because it gives helpful guidance on how share-based payment transactions involving an entity’s own equity instruments or equity instruments of another entity in the same group should be accounted for,”
IFRIC’s principal role is to consider, on a timely basis within the context of International Financial Reporting Standards and the International Accounting Standards Board (IASB) Framework, accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus on the appropriate accounting treatment.
IASB is committed to developing in the public interest a single set of high quality global accounting standards.
For more information please visit the following website: www.iasb.org