Insights into IFRS 2

Employee share-based payments arrangements with settlement alternatives

22 Sep 2025Less than a minute
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The use of share-based payments has grown significantly over time, with many organisations opting to compensate directors, senior executives, employees and other providers of goods and services through equity instruments or cash and other assets linked to the value of equity instruments.

The accounting treatment for agreements with settlement alternatives depends on which party has the choice of settlement.

This article discusses share-based payment arrangements that provide either the entity or the employee with a choice as to whether settlement occurs in equity instruments or in cash or other assets (hereafter ‘cash’). 

Employee share-based payments arrangements
Insights into IFRS 2

Employee share-based payments arrangements

This article gives you the full insight into accounting for share-based payment transactions with employees where there are settlement alternatives.

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How we can help

We hope you find the information in this article helpful in giving you some insight into IFRS 2. If you would like to discuss any of the points raised, please speak to your usual Grant Thornton contact or visit www.grantthornton.global/locations to find your local member firm. 

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