Addendum IASCF Group Cash-settled Share-based Payment Transactions (Amendments to FRS 2) ThisdocumentsetsoutAmendmentstoFRS2Share-basedPayment. Entitiesshallapplytheseamendmentstoallshare-basedpaymentswithin thescopeofFRS2forannualperiodsbeginningonorafter1January 2011.Earlier application is permitted. Intherubric,thefirstsentenceisamendedasfollows(newtextis underlined and deleted text is struck through). Financial Reporting Standard 2Share-based Payment (FRS 2) is set out in paragraphs 162 64 and Appendices AB. All the paragraphs ... Introduction In the Introduction to FRS 2, after paragraph IN2, a heading and paragraph IN2A are added. IASBs reasons for amending IFRS 2 in June 2009 IN2AInJune2009theInternationalAccountingStandardsBoard amended IFRS 2 to clarify its scope and the accounting for group cash-settledshare-basedpaymenttransactionsintheseparateor individual financial statements of the entity receiving the goods or serviceswhenthatentityhasnoobligationtosettletheshare-basedpaymenttransaction.Theamendmentsalsoincorporatethe guidance contained in the following Interpretations: IFRIC 8 Scope of IFRS 2 IFRIC 11 IFRS 2Group and Treasury Share Transactions. As a result, the IASB withdrew IFRIC 8 and IFRIC 11. Addendum IASCF Scope Paragraph 2 is amended and paragraph 3 is deleted (new text is underlined and deleted text is struck through) and paragraph 3A is added. 2AnentityshallapplythisFRSinaccountingforallshare-based paymenttransactions,whetherornottheentitycanidentify specificallysomeorallofthegoodsorservicesreceived, including: (a)equity-settledshare-basedpaymenttransactions,in whichtheentityreceivesgoodsorservicesas considerationforequityinstrumentsoftheentity (including shares or share options), (b)cash-settledshare-basedpaymenttransactions,inwhich theentityacquiresgoodsorservicesbyincurring liabilitiestothesupplierofthosegoodsorservicesfor amountsthatarebasedontheprice(orvalue)ofthe entityssharesorotherequityinstrumentsoftheentity, and (c)transactionsinwhichtheentityreceivesoracquires goodsorservicesandthetermsofthearrangement provide either the entity or the supplier ofthose goods or serviceswithachoiceofwhethertheentitysettlesthe transactionincash(orotherassets)orbyissuingequity instruments, exceptasnotedinparagraphs5and63A6.Intheabsenceof specificallyidentifiablegoodsorservices,othercircumstances mayindicatethatgoodsorserviceshavebeen(orwillbe) received, in which case this FRS applies. 3[DeletedbyIASB]ForthepurposesofthisFRS,transfersofan entitys equity instruments by its shareholders to parties that have supplied goods or services to the entity (including employees) are share-based payment transactions, unless the transfer is clearly for a purpose other than payment for goods or services supplied to the entity.Thisalsoappliestotransfersofequityinstrumentsofthe entitys parent, or equity instruments of another entity in the same group as the entity, to parties that have supplied goods or services to the entity.Addendum IASCF 3AAshare-basedpaymenttransactionmaybesettledbyanother group entity (or a shareholder of any group entity) on behalf of the entityreceivingoracquiringthegoodsorservices.Paragraph2 also applies to an entity that (a)receivesgoodsorserviceswhenanotherentityinthe same group (or a shareholder of any group entity) has the obligationtosettletheshare-basedpaymenttransaction, or (b)hasanobligationtosettleashare-basedpayment transactionwhenanotherentityinthesamegroup receives the goods or services unlessthetransactionisclearlyforapurposeotherthanpayment for goods or services supplied to the entity receiving them. Equity-settled share-based payment transactions Paragraph 13A is added as follows. Overview 13AInparticular,iftheidentifiableconsiderationreceived(ifany)by theentityappearstobelessthanthefairvalueoftheequity instrumentsgrantedorliabilityincurred,typicallythissituation indicatesthatotherconsideration(ieunidentifiablegoodsor services)hasbeen(orwillbe)receivedbytheentity.Theentity shallmeasuretheidentifiablegoodsorservicesreceivedin accordancewiththisFRS.Theentityshallmeasurethe unidentifiable goods or services received (or to be received) as the differencebetweenthefairvalueoftheshare-basedpaymentand thefair value of any identifiable goods or services received (or to bereceived). Theentity shallmeasuretheunidentifiable goods or servicesreceivedatthegrantdate.However,forcash-settled transactions,theliabilityshallberemeasuredattheendofeach reportingperioduntilitissettledinaccordancewithparagraphs 3033. Addendum IASCF Share-based payment transactions among group entities After paragraph 43, a heading and paragraphs 43A43D are added. Share-based payment transactions among group entities (2010 amendments) 43AFor share-based payment transactions among group entities, in its separate or individual financial statements, the entity receiving the goodsorservicesshallmeasurethegoodsorservicesreceivedas eitheranequity-settledoracash-settledshare-basedpayment transaction by assessing: (a)the nature of the awards granted, and (b)its own rights and obligations. Theamountrecognisedbytheentityreceivingthegoodsor servicesmaydifferfromtheamountrecognisedbythe consolidatedgrouporbyanothergroupentitysettlingtheshare-based payment transaction. 43BThe entity receiving the goods or services shall measure the goods orservicesreceivedasanequity-settledshare-basedpayment transaction when: (a)the awards granted are its own equity instruments, or (b)theentityhasnoobligationtosettletheshare-based payment transaction. Theentityshallsubsequentlyremeasuresuchanequity-settled share-basedpaymenttransactiononlyforchangesinnon-market vestingconditionsinaccordancewithparagraphs1921.Inall othercircumstances,theentityreceivingthegoodsorservices shallmeasurethegoodsorservicesreceivedasacash-settled share-based payment transaction. 43CTheentitysettlingashare-basedpaymenttransactionwhen anotherentityinthegroupreceivesthegoodsorservicesshall recognise the transaction as an equity-settled share-based payment Addendum IASCF transactiononlyifitissettledintheentitysownequity instruments.Otherwise,thetransactionshallberecognisedasa cash-settled share-based payment transaction. 43DSomegrouptransactionsinvolverepaymentarrangementsthat requireonegroupentitytopayanothergroupentityforthe provision of the share-based payments to the suppliers of goods or services.Insuchcases,theentitythatreceivesthegoodsor servicesshallaccountfortheshare-basedpaymenttransactionin accordancewithparagraph43Bregardlessofintragroup repayment arrangements. Effective date Paragraph 63, a heading and paragraph 64 are added. 63AnentityshallapplythefollowingamendmentsmadebyGroup Cash-settledShare-basedPaymentTransactionsissuedinJuly 2010retrospectively,subjecttothetransitionalprovisionsin paragraphs5359,inaccordancewithFRS108Accounting Policies,ChangesinAccountingEstimatesandErrorsforannual periods beginning on or after 1 January 2011: (a)the amendment of paragraph 2, the deletion of paragraph 3 and the addition of paragraphs 3A and 43A43D and of paragraphsB45,B47,B50,B54,B56B58andB60in AppendixBinrespectoftheaccountingfortransactions among group entities. (b)thereviseddefinitionsinAppendixAofthefollowing terms: cash-settled share-based payment transaction, equity-settled share-based payment transaction, share-based payment arrangement, and share-based payment transaction. Iftheinformationnecessaryforretrospectiveapplicationisnot available,anentityshallreflectinitsseparateorindividual financialstatementstheamountspreviouslyrecognisedinthe groupsconsolidatedfinancialstatements.Earlierapplicationis Addendum IASCF permitted.Ifanentityappliestheamendmentsforaperiod beginning before 1 January 2011, it shall disclose that fact. Withdrawal of IC Interpretations 64GroupCash-settledShare-basedPaymentTransactionsissuedin July2010supersedesICInterpretation8ScopeofFRS2andIC Interpretation 11 FRS 2Group and Treasury Share Transactions. Theamendmentsmadebythatdocumentincorporatedthe previousrequirementssetoutinICInterpretation8andIC Interpretation 11 as follows: (a)amendedparagraph2andaddedparagraph13Ain respectoftheaccountingfortransactionsinwhichthe entitycannotidentifyspecificallysomeorallofthe goodsorservicesreceived.Thoserequirementswere effectiveforannualperiodsbeginningonorafter1July 2007. (b)addedparagraphsB46,B48,B49,B51B53,B55,B59 andB61inAppendixBinrespectoftheaccountingfor transactionsamonggroupentities.Thoserequirements wereeffectivefor annual periods beginning onor after 1 January 2010. Thoserequirementswereappliedretrospectivelyinaccordance withtherequirementsofFRS108,subjecttothetransitional provisions of FRS 2. Addendum IASCF Defined terms InAppendixA,thefollowingdefinitionsareamended(newtextis underlined and deleted text is struck through) and a footnote is added. cash-settled share-based payment transaction Ashare-basedpaymenttransactioninwhich theentity acquiresgoods or services by incurring aliabilitytotransfercashorotherassetstothe supplierofthosegoodsorservicesforamounts thatarebasedontheprice(orvalue)ofthe entityssharesorotherequityinstruments (includingsharesorshareoptions)oftheentity or another group entity. equity-settled share-based payment transaction Ashare-basedpaymenttransactioninwhich the entity (a)receivesgoodsorservicesas considerationforitsownequity instrumentsoftheentity(including shares or share options), or (b)receivesgoodsorservicesbuthasno obligation to settle thetransactionwith the supplier. share-based payment arrangement Anagreementbetweentheentity(oranother group(a)entityoranyshareholderofanygroup entity) and another party (including an employee) to enter into a share based payment transaction whichtherebythatentitlestheotherpartyto receive (a)cashorotherassetsoftheentityfor amounts that are based on the price(or value)oftheentityssharesorother equityinstruments(includingshares orshareoptions)oftheentityor another group entity, or to receive (a)Agroupisdefinedinparagraph4ofFRS127 Consolidated and Separate Financial Statements as a parent and its subsidiaries from the perspective of the reporting entitys ultimate parent. Addendum IASCF (b)equityinstruments(includingshares orshareoptions)oftheentityor another group entity, provided the specifiedvesting conditions, if any, are met. share-based payment transaction A transaction in which the entity (a)receivesgoodsorservicesfromas considerationforequityinstruments of the entity (including shares orshare options), or acquiresgoods or services by incurring liabilities to the supplier of thosegoodsorservices(includingan employee)inashare-basedpayment arrangement, or(b)incursanobligationtosettlethe transactionwiththesupplierina share-basedpaymentarrangement whenanothergroupentityreceives thosegoodsorservices.foramounts thatarebasedonthepriceofthe entityssharesorotherequity instruments of the entity. Scope of FRS 2 InAppendixBApplicationguidance,aheadingandparagraphsB45B61 are added. Share-based payment transactions among group entities (2010 amendments) B45Paragraphs43A43Caddresstheaccountingforshare-based paymenttransactionsamonggroupentitiesineachentitys separateorindividualfinancialstatements.ParagraphsB46B61 discuss how to apply the requirements in paragraphs 43A43C. As noted in paragraph 43D, share-based payment transactions among group entities may take place for a variety of reasons depending on factsandcircumstances.Therefore,thisdiscussionisnot Addendum IASCF exhaustiveandassumesthatwhentheentityreceivingthegoods orserviceshasnoobligationtosettlethetransaction,the transactionisaparentsequitycontributiontothesubsidiary, regardless of any intragroup repayment arrangements. B46Althoughthediscussionbelowfocusesontransactionswith employees,italsoappliestosimilarshare-basedpayment transactionswithsuppliersofgoodsorservicesotherthan employees.Anarrangementbetweenaparentanditssubsidiary mayrequirethesubsidiarytopaytheparentfortheprovisionof theequityinstrumentstotheemployees.Thediscussionbelow doesnotaddresshowtoaccountforsuchanintragrouppayment arrangement. B47Fourissuesarecommonlyencounteredinshare-basedpayment transactions among group entities. For convenience, theexamples below discuss the issues in terms of a parent and its subsidiary. Share-based payment arrangements involving an entitys own equity instruments B48Thefirstissueiswhetherthefollowingtransactionsinvolvingan entitys own equity instruments should be accounted for as equity-settledorascash-settledinaccordancewiththerequirementsof this FRS: (a)anentitygrantstoitsemployeesrightstoequity instrumentsoftheentity(egshareoptions),andeither choosesorisrequiredtobuyequityinstruments(ie treasuryshares)fromanotherparty,tosatisfyits obligations to its employees; and (b)anentitysemployeesaregrantedrightstoequity instruments of the entity (eg share options), either by the entity itself or by its shareholders, and the shareholders of the entity provide the equity instruments needed. B49Theentityshallaccountforshare-basedpaymenttransactionsin whichitreceivesservicesasconsiderationforitsownequity instrumentsasequity-settled.Thisappliesregardlessofwhether theentitychoosesorisrequiredtobuythoseequityinstruments from another party to satisfy its obligations to its employees under the share-based payment arrangement. It also applies regardless of whether: Addendum IASCF (a)theemployeesrightstotheentitysequityinstruments weregrantedbytheentityitselforbyitsshareholder(s); or (b)theshare-basedpaymentarrangementwassettledbythe entity itself or by its shareholder(s). B50If the shareholder has an obligation to settle the transaction with its investees employees, it provides equity instruments of its investee rather than its own. Therefore, if its investee is in the same group astheshareholder,inaccordancewithparagraph43C,the shareholdershallmeasureitsobligationinaccordancewiththe requirementsapplicabletocash-settledshare-basedpayment transactions in theshareholders separatefinancialstatements and thoseapplicabletoequity-settledshare-basedpayment transactions in the shareholders consolidated financial statements. Share-based payment arrangements involving equity instruments of the parent B51Thesecondissueconcernsshare-basedpaymenttransactions betweentwoormoreentitieswithinthesamegroupinvolvingan equity instrument of another group entity. For example, employees of a subsidiary are granted rights to equity instruments of its parent as consideration for the services provided to the subsidiary. B52Therefore,thesecondissueconcernsthefollowingshare-based payment arrangements: (a)aparentgrants rights to its equity instruments directly to theemployeesofitssubsidiary:theparent(notthe subsidiary) has the obligation to provide the employees of the subsidiary with the equity instruments; and (b)asubsidiarygrantsrightstoequityinstrumentsofits parent to its employees: thesubsidiary has the obligation to provide its employees with the equity instruments. Addendum IASCF A parent grants rights to its equity instruments to the employees of its subsidiary (paragraph B52(a)) B53Thesubsidiarydoes not havean obligation to provideits parents equityinstrumentstothesubsidiarysemployees.Therefore,in accordancewithparagraph43B,thesubsidiaryshallmeasurethe servicesreceivedfromitsemployeesinaccordancewiththe requirementsapplicabletoequity-settledshare-basedpayment transactions, and recognise a corresponding increase in equity as a contribution from the parent. B54Theparenthasanobligationtosettlethetransactionwiththe subsidiarysemployeesbyprovidingtheparentsownequity instruments.Therefore,inaccordancewithparagraph43C,the parentshallmeasureitsobligationinaccordancewiththe requirementsapplicabletoequity-settledshare-basedpayment transactions. A subsidiary grants rights to equity instruments of its parent to its employees (paragraph B52(b)) B55Becausethesubsidiarydoesnotmeeteitheroftheconditionsin paragraph43B,itshallaccountforthetransactionwithits employees as cash-settled. This requirement applies irrespective of howthesubsidiaryobtainstheequityinstrumentstosatisfyits obligations to its employees. Share-based payment arrangements involving cash-settled payments to employees B56Thethirdissueishowanentitythatreceivesgoodsorservices from its suppliers (including employees) should account for share-based arrangements that are cash-settled when the entity itself does nothaveanyobligationtomaketherequiredpaymentstoits suppliers.Forexample,considerthefollowingarrangementsin whichtheparent(nottheentityitself)hasanobligationtomake the required cash payments to the employees of the entity: (a)theemployeesoftheentitywillreceivecashpayments that are linked to the price of its equity instruments. Addendum IASCF (b)theemployeesoftheentitywillreceivecashpayments thatarelinkedtothepriceofitsparentsequity instruments. B57The subsidiary does not have an obligation to settle the transaction with its employees. Therefore, the subsidiary shall account for the transactionwithitsemployeesasequity-settled,andrecognisea corresponding increase in equity as a contribution from its parent.Thesubsidiaryshallremeasurethecostofthetransaction subsequentlyforanychangesresultingfromnon-marketvesting conditionsnotbeingmetinaccordancewithparagraphs1921.Thisdiffersfromthemeasurementofthetransactionascash-settled in the consolidated financial statements of the group. B58Becausetheparent has an obligation to settlethetransactionwith theemployees,andtheconsiderationiscash,theparent(andthe consolidatedgroup)shallmeasureitsobligationinaccordance withtherequirementsapplicabletocash-settledshare-based payment transactions in paragraph 43C. Transfer of employees between group entities B59Thefourthissuerelatestogroupshare-basedpayment arrangementsthatinvolveemployeesofmorethanonegroup entity.Forexample,aparentmightgrantrightstoitsequity instrumentstotheemployeesofitssubsidiaries,conditionalupon the completion of continuing service with the group for a specified period. An employee of one subsidiary might transfer employment toanothersubsidiaryduringthespecifiedvestingperiodwithout the employees rights to equity instruments of the parent under the originalshare-basedpaymentarrangementbeingaffected.Ifthe subsidiarieshavenoobligationtosettletheshare-basedpayment transaction with their employees, they account for it as an equity-settledtransaction.Eachsubsidiaryshallmeasuretheservices receivedfromtheemployeebyreferencetothefairvalueofthe equity instruments at the date the rights to those equity instruments wereoriginallygrantedbytheparentasdefinedinAppendixA, and the proportion of the vesting period the employee served with each subsidiary. Addendum IASCF B60If the subsidiary has an obligation to settle the transaction with its employeesinitsparentsequityinstruments,itaccountsforthe transactionascash-settled.Eachsubsidiaryshallmeasurethe services received on the basis of grant date fair value of the equity instrumentsfortheproportionofthevestingperiodtheemployee servedwitheachsubsidiary.Inaddition,eachsubsidiaryshall recogniseanychangeinthefairvalueoftheequityinstruments during the employees service period with each subsidiary. B61Suchanemployee,aftertransferringbetweengroupentities,may fail to satisfy avesting condition other than amarket condition as definedinAppendixA,egtheemployeeleavesthegroupbefore completingtheserviceperiod.Inthiscase,becausethevesting conditionisservicetothegroup,eachsubsidiaryshalladjustthe amountpreviouslyrecognisedinrespectoftheservicesreceived from the employee in accordance with the principles in paragraph 19.Hence,iftherightstotheequityinstrumentsgrantedbythe parentdonotvestbecauseofanemployeesfailuretomeeta vestingconditionotherthanamarketcondition,noamountis recognisedonacumulativebasisfortheservicesreceivedfrom that employee in the financial statements of any group entity. Addendum IASCF Table of Concordance ThistableshowshowthecontentsofICInterpretation8andIC Interpretation 11 correspond with FRS 2 (as amended in 2010).

IC Interpretation 8 paragraph FRS 2(amended) paragraph ICInterpretation 11 paragraph FRS 2 (amended) paragraph 121B48 2, 3IG5A, IG5B2, 3B51, B52 4None46B46 5IG5C7B49 628B53 7, 829B59 9210B61 91213A11B55 13, 146412, 1364 IE1IE4IG Example 1IE1IE4IG Example 14 BC1BC5BC18ABC18DBC1, BC2None BC6BC12BC128BBC128HBC3BC18None BC13NoneBC19BC268P BC20None BC21, BC22BC268Q, BC268R