IFRIC 8 explains that, if the identifiable consideration given appears to be less than the fair value of the equity instruments granted or liability incurred, this situation typically indicates that other consideration has been or will be received. IFRS 2 therefore applies.
Introducing IFRIC 8, Robert Garnett, IASB member and Chairman of IFRIC, said:
This Interpretation should assist preparers in those parts of the world where, for public policy or other reasons, companies give their shares or rights to shares to individuals, organisations or groups that have not provided goods or services to the company. IFRIC 8 confirms that these arrangements fall within the scope of IFRS 2, as directors would not make such arrangements if they did not expect some benefit to accrue to the company.