The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

2.19 EXEMPTIONS FROM OTHER IFRSS

2.19.1 Share-Based Payment Transactions

2.19.1.1 Exemption Explained

IFRS 1 permits some relief from IFRS 2 based on date of grant and date of vesting of share-based instruments.582 Exhibit 2-23 illustrates this exemption.

Exhibit 2-23 Share-Based Payment Transaction Exemption under IFRS 1

Comment: The exemption refers to January 1, 2005, because this was the beginning date and the date after which IFRS 2 applied to annual financial statements. It also refers to November 7, 2002, because this is the start date of the look-back period under certain conditions set in the transitional provision of IFRS 2.583 As a matter of fact, the IFRS 1 exemption reproduces the transitional provisions of IFRS 2 to IFRS first-time adopters. IFRS 1 explains that the rationale of the exemption is to treat IFRS first-time adopters in the same way as entities already reporting under IFRSs.

A European survey indicates that all 2005 first-time adopters used this exemption, when available.584 A 2005 survey of 45 IFRS first-time adopters illustrates that approximately 58% used this exemption.585 A survey of interim reports of 144 listed companies in FTSE 101-350 in 2005 converting from UK GAAP to IFRSs reveals that 76% availed themselves of this exemption.586

2.19.1.2 Implications for Accounting Estimates

Paragraph 2.11.14 previously explains the implications on ...