What are the main accounting and business considerations in share-based payment schemes?
Under AASB 2, costs related to share-based payments have to be charged to income statements. As a result, share based payments can have a significant impact on results. Because it requires the use of complex valuation models, AASB 2 is far from easy to apply and understand.
Before developing a share-based payment plan, your management should be aware of the main features. When you understand these features more comprehensively, you will have a better understanding of the consequences for your income statement. This can significantly reduce the impact of complex, time-consuming and costly accounting requirements at your organisation.
Understand the key points with our new guide
This short guide is a “how-to” guide of the key points you need to keep in mind when setting up your share-based payment plans.