IFRS 2 requires entities to appropriately present share-based payment expenses within profit or loss and recognise a corresponding increase in equity for equity-settled transactions or liabilities for cash-settled arrangements.
Entities are also required to provide clear and transparent disclosures, including the nature of arrangements, vesting conditions, valuation methodologies, key assumptions used in determining fair value, and the overall financial impact of share-based payments during the reporting period.
For groups operating in Saudi Arabia, additional consideration is required where share-based payment schemes are administered at group level, particularly in determining which entity has the obligation and how costs are allocated within the group.
Robust disclosure under IFRS 2 enhances transparency and supports investor understanding of remuneration structures and their impact on financial performance.
At Grant Thornton Saudi Arabia, we support organisations in ensuring compliance with IFRS requirements and enhancing the clarity and quality of financial reporting.
