NAS 34 determines methodological grounds for generation of accounting information on transactions with reference to which stock-based payment should be made with the use of equity capital tools and/or funds (other assets), as well as disclosure of this information in financial reporting.
NAS 34 determines the following new terms: internal value, agreement on stock-based payment, stock option and a stock-based settlement transaction.
Internal value - a difference between fair value of stocks to which a goods (works, services) supplier is entitled to subscribe to or to acquire under an agreement on stock-based payment, and a value which has to be paid to a supplier for these stocks.
Agreement on stock-based payment – an agreement concluded between an enterprise and other party (including an employee) on supplies of goods (works, services) with stock-based settlements, according to which, after meeting the conditions thereof, the enterprise has either to repay its liability with pecuniary funds (other assets) in amount that should be calculated based on the value of stocks (other equity capital tools), or to transfer its equity capital tools.
Stock-based settlement transaction – a transaction on which debts for purchased (acquired) goods (works, services) should be repaid by an enterprise with equity capital tools (including stocks and stock options) and/or funds (other assets) in amount calculated based on the value of stocks or other equity capital tools.
Stock option – an agreement qualifying (but not obliging) a holder for subscription to stocks with a fixed price or a price calculable for a short period.
Updated option – an option for new stocks, which can be formed when stocks are used to ensure compliance with the previous stock option price.
NAS 34 consists of the following sections:
recognition and evaluation of stock-based settlement transactions;
disclosure of information about stock-based settlement transactions in notes to financial reporting.
NAS 34 comes into effect starting on January 01, 2010.
NAS 34 determines methodological grounds for generation of accounting information on transactions with reference to which stock-based payment should be made with the use of equity capital tools and/or funds (other assets), as well as disclosure of this information in financial reporting.
NAS 34 determines the following new terms: internal value, agreement on stock-based payment, stock option and a stock-based settlement transaction.
Internal value - a difference between fair value of stocks to which a goods (works, services) supplier is entitled to subscribe to or to acquire under an agreement on stock-based payment, and a value which has to be paid to a supplier for these stocks.
Agreement on stock-based payment – an agreement concluded between an enterprise and other party (including an employee) on supplies of goods (works, services) with stock-based settlements, according to which, after meeting the conditions thereof, the enterprise has either to repay its liability with pecuniary funds (other assets) in amount that should be calculated based on the value of stocks (other equity capital tools), or to transfer its equity capital tools.
Stock-based settlement transaction – a transaction on which debts for purchased (acquired) goods (works, services) should be repaid by an enterprise with equity capital tools (including stocks and stock options) and/or funds (other assets) in amount calculated based on the value of stocks or other equity capital tools.
Stock option – an agreement qualifying (but not obliging) a holder for subscription to stocks with a fixed price or a price calculable for a short period.
Updated option – an option for new stocks, which can be formed when stocks are used to ensure compliance with the previous stock option price.
NAS 34 consists of the following sections:
NAS 34 comes into effect starting on January 01, 2010.