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MASB exposes limited amendment on Share-based Payment Standard (24 November 2009)

The Malaysian Accounting Standards Board today issued exposure draft on Amendments to FRS 2 Share-based Payment (ED 68) that clarifies the accounting for group cash-settled share-based payment transactions. The exposure draft is word-for-word to that issued by the International Accounting Standards Board (IASB).

In certain share-based payment transactions, the subsidiary receives goods or services from employees or suppliers but its parent or another entity in the group pays those suppliers. ED 68 clarifies how an individual subsidiary in a group should account for these share-based payment arrangements in its own financial statements.

The exposure draft clarifies that an entity that receives goods or services in a share-based payment arrangement must account for those goods or services no matter which entity in the group settles the transaction, and no matter whether the transaction is settled in shares or cash.

In addition, it also proposed to clarify that in FRS 2 a ‘group’ has the same meaning as in FRS 127 Consolidated and Separate Financial Statements, that is, it includes only a parent and its subsidiaries.

Interested parties, including the business communities, are encouraged to study the Exposure Draft and provide feedback to MASB. 

The exposure period expires on 28 December 2009.  The Exposure draft is available on MASB website at http://www.masb.org.my. The public is encouraged to provide their comments electronically through ED Online on our website. Alternatively, copies of the exposure draft is available free of charge from MASB office.


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For enquiries, please contact:

Malaysian Accounting Standards Board
Wisma UOA Pantai
Suites 5.2, Level 5
No. 11, Jalan Pantai Jaya
59200 Kuala Lumpur
Tel: 03-2240 9200
Fax: 03-2240 9300
Email: masb@masb.org.my