Share-based payments and employee benefits are grouped together because some entities may, when selecting how best to reward and motivate their employees, take into account the financial reporting consequences of the schemes that they have in place.

Share-based payments

Like previous UK GAAP, other than under the now withdrawn FRSSE, and International Financial Reporting Standards (IFRS), FRS 102 requires a charge where an entity provides some form of benefit under a share-based payment transaction.

This applies whether the benefits provided are in the form of equity, or in cash at an amount that is based upon equity.