IFRS 2
Okay kiddo, so you know how sometimes when you do something good, like clean your room or help your mom, you might get a treat or a prize? Well, sometimes grown-ups who work for a company get a treat too - it's called stock options!
Stock options mean that the workers get the chance to buy a part of the company they work for at a cheaper price than other people can. It's like a special discount, just for them! And when the company does well, the value of the company goes up, which means the stock options become more valuable too.
But there's a rulebook that grown-ups who run companies have to follow when they give out these stock options. It's called IFRS 2.
IFRS 2 is like a list of rules that says how companies should give out those special treats to their workers. It makes sure the workers get the right kind of treats and that the company reports everything correctly, so everyone knows what's happening.
For example, IFRS 2 says that the company has to record how much those treats are worth on their books, so they can show it to their boss and others who might want to know. It also says that the company has to find a fair way to decide who gets the treats - it can't just give them to their favorite workers, or else that wouldn't be fair to everyone else.
So in short, IFRS 2 is just a set of rules that helps grown-ups who run companies give out special treats to their workers in a fair and transparent way.
Stock options mean that the workers get the chance to buy a part of the company they work for at a cheaper price than other people can. It's like a special discount, just for them! And when the company does well, the value of the company goes up, which means the stock options become more valuable too.
But there's a rulebook that grown-ups who run companies have to follow when they give out these stock options. It's called IFRS 2.
IFRS 2 is like a list of rules that says how companies should give out those special treats to their workers. It makes sure the workers get the right kind of treats and that the company reports everything correctly, so everyone knows what's happening.
For example, IFRS 2 says that the company has to record how much those treats are worth on their books, so they can show it to their boss and others who might want to know. It also says that the company has to find a fair way to decide who gets the treats - it can't just give them to their favorite workers, or else that wouldn't be fair to everyone else.
So in short, IFRS 2 is just a set of rules that helps grown-ups who run companies give out special treats to their workers in a fair and transparent way.