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. CredVal provides 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).
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 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 compliance demands.
Our valuations are thoroughly documented and modeled in a customized fashion considering all client-specific parameters which can affect fair value of the instruments.