ACCA SBR ^UK Syllabus C. Reporting The Financial Performance Of A Range Of Entities - Share-based payment - Notes ^{13 / 24}

Differences between Section 26 of FRS 102 and IFRS 2 are:

IFRS 2	FRS 102 Section 26
IFRS 2 contains detailed guidance and treats a cancellation or settlement as a repurchase of an equity instrument.	In general, simplified guidance is provided. For example, if there is a cancellation or settlement this is recognised immediately as if vesting has occurred.
There are no simplified measurement requirements for share-based payments in IFRS 2.	For a group plan, an alternative simplified treatment of measuring the share-based payment expense on the basis of a reasonable allocation of the expense for the group is permitted in IFRS 2.
Under IFRS 2, fair value of the shares is based on market prices if available. If market prices are not available, the entity should estimate the fair value of the equity instruments granted using a valuation technique.	FRS 102 requires an entity to measure the fair value of shares and the related goods or services using a three-tier measurement hierarchy (see below).
Additional disclosures	Reduced disclosures

If an observable market price is available for the equity instruments granted, use that price.
If an observable market price is not available, measure the fair value of equity instruments granted using entity-specific observable market data such as:
(i) A recent transaction in the entity's shares; or
(ii) A recent independent fair valuation of the entity or its principal assets.
If an observable market price is not available and obtaining a reliable measurement of fair value under (b) is impracticable, indirectly measure the fair value of the shares using a valuation method that uses market data to the greatest extent practicable to estimate what the price of those equity instruments would be on the grant date in an arm's length transaction between knowledgeable, willing parties.