IFRS 2 "Share-based payment" encompasses all share-based compensation for goods and services rendered. It applies to all entities including private and early stage companies. Aranca has performed hundreds of stock options valuations for IFRS 2 for growing privately-held companies across diverse industry sectors and enterprise development stages (early start-ups to exit /IPO stage). Our extensive experience in dealing with complex capital structures and practical application of complex options pricing models helps clients deal with all facets arising from IFRS 2 provision for stock options expensing.
IFRS 2 requires all share-based compensation and other payments involving grant of equity securities or derivatives be accounted at 'fair value' and expensed off over their vesting period. Compliance with these provisions requires use of sophisticated option pricing models and tracking behavioral data related to employees and other option recipients. On an ongoing basis, this exercise tends to become complex due to increasing number of grants, frequency of grants, difference in vesting terms presenting significant administration and compliance demands on entities' finance staff.
As a leading provider of financial reporting valuation services, Aranca can help you manage this quite efficiently and cost effectively. Our valuations are thoroughly documented and modeled in a customized fashion considering all client-specific parameters which can affect fair value of the instruments.