Add to favorites
While both US GAAP and IFRS apply a single standard to all share-based payment arrangements, regardless of whether the counterparty is a nonemployee, each framework has certain guidance specific to the measurement of nonemployee awards.
Some awards categorized as nonemployee instruments under US GAAP will be treated as employee awards under IFRS.
ASC 718, Compensation—Stock Compensation, applies to employee and nonemployee share-based transactions. The guidance is the same except for specific guidance related to the attribution of compensation cost and certain inputs used in the valuation of nonemployee awards.
The guidance focuses on the legal definition of an employee with certain specific exceptions.
IFRS 2, Share-based payments, includes accounting for all employee and nonemployee arrangements. Furthermore, under IFRS, the definition of an employee is broader than the US GAAP definition.
IFRS focuses on the nature of the services provided and treats awards to employees and others providing employee-type services similarly.
Awards for goods from vendors or nonemployee-type services are treated differently.

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide