Richardson Company is contemplating the establishment of a share-based compensation plan to provide long-run incentives for its top management. However, members of the compensation committee of the board of directors have voiced some concerns about adopting these plans, based on news accounts related to a recent accounting standard in this area. They would like you to conduct some research on this recent standard so they can be better informed about the accounting for these plans.
Access the IFRS authoritative literature at the IASB website ( ). When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.)
(a) Identify the authoritative literature that addresses the accounting for share based payment compensation plans.
(b) Briefly discuss the objectives for the accounting for share-based compensation.
What is the role of fair value measurement?
(c) The Richardson Company board is also considering an employee share purchase plan, but the Board does not want to record expense related to the plan. What are the IFRS requirements for the accounting for an employee share-purchase plan?

  • CreatedOctober 11, 2011
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