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Share-based payments of an associate


This issue will provide guidance on how and when should the investor record a change in its ownership interest when an associate (investee) issues new shares under a share-based payment scheme.

An issue of new shares by an associate, for example on exercise of options granted in a share-based payment arrangement, will (usually) increase the associate’s net assets but reduce the investor’s percentage ownership interest. This will increase or decrease the investor’s share of net assets (unless the proceeds per share exactly equals the net assets per share of the associate).