Audit-Ready IFRS 2 Valuation Reports
409.AI helps companies reporting under IFRS prepare expert-reviewed grant-date fair value analysis for share-based payment expense, with documentation built for auditor review.
IFRS 2 is the international accounting standard for share-based payments: it requires companies to measure options and other equity awards at grant-date fair value and recognize that amount as an expense over the vesting period.
At a glance
| Report | IFRS 2 valuation report |
|---|---|
| Summary | Expert-reviewed IFRS 2 valuation reports with grant-date fair value analysis for share-based payment expense and audit support. |
| Price | From $1,499 |
| Jurisdiction | Worldwide |
What is included
- Company and award intake context
- Grant-date fair value analysis with documented model inputs
- Expected life, volatility, risk-free rate, and dividend yield support
- Support for expense recognition and disclosure workflows
- Expert-reviewed final valuation report
Frequently asked questions
What is IFRS 2?
IFRS 2 is the international accounting standard for share-based payments. It requires companies to measure options and other equity awards at their grant-date fair value and recognize that amount as an expense over the vesting period.
Who needs IFRS 2 valuations?
Companies that prepare financial statements under IFRS, which includes most jurisdictions outside the US such as the UK, the EU, and Canada. The need typically starts when financials are audited, during investor diligence, or in preparation for a listing.
How is the fair value of an award calculated?
Straightforward options are commonly valued with the Black-Scholes model, while awards with early exercise features or market conditions can require binomial or Monte Carlo approaches. Inputs include the underlying share value, exercise price, expected life, volatility, risk-free rate, and dividend yield.
What is the difference between equity-settled and cash-settled awards?
Equity-settled awards are measured once at grant-date fair value and not remeasured. Cash-settled awards, such as phantom shares, are remeasured at each reporting date with changes recognized in profit or loss.
How do vesting conditions affect the valuation?
Market conditions, such as share price targets, are built into the grant-date fair value itself. Service and non-market performance conditions instead adjust the number of awards expected to vest over the vesting period.
How does IFRS 2 differ from ASC 718?
The principles are similar, but IFRS 2 requires graded vesting to be expensed on an accelerated basis for each tranche and forfeitures to be estimated, while US GAAP permits straight-line recognition and a forfeiture policy election. Companies reporting under US GAAP use ASC 718 instead.
Do EMI or CSOP options need IFRS 2 expense?
Yes, if the company reports under IFRS. The UK tax advantages of EMI and CSOP schemes do not remove the accounting requirement, and the HMRC valuation and the IFRS 2 grant-date fair value are separate exercises that are often prepared together.
Is this tax, legal, or accounting advice?
No. The valuation report organizes company-provided information into supporting documentation and should be reviewed with your auditors and qualified advisors.