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FRS 102: Share-based payment under UK GAAP

FRS 102 Section 26 Share-based Payment sets out the requirements that apply to equity-settled and cash-settled share-based payment transactions. Examples of share-based payment arrangements include share options or share appreciation rights granted to suppliers or employees of an entity in return for goods or services.

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Access the standard

The requirements relating to specific topics are set out as sections within FRS 102. However, individual sections of the standard should not be looked at in isolation as other parts may be relevant.

FRS 102 is regularly updated and amended by the Financial Reporting Council (FRC). For the full text of FRS 102, guidance on which version of the standard to apply and notes on recent amendments, see our main FRS 102 page.

ICAEW factsheets and guides

The Corporate Reporting Faculty's annual UK GAAP factsheets provide a more detailed discussion of recent UK GAAP amendments.

Exclusive Share for share exchanges
  • Helpsheets and support
  • 29 Nov 2023
  • Technical Advisory Services
Technical helpsheet issued to help ICAEW members to understand the company law and financial reporting implications of a share for share exchange.
Exclusive Employee share trusts
  • Helpsheets and support
  • 23 Nov 2022
  • Technical Advisory Services
Technical helpsheet issued to help ICAEW members to help members account for various ‘trust’ arrangements in relation to employee benefits under FRS 102.
Exclusive Share options under FRS 102
  • Helpsheets and support
  • 15 Sep 2022
  • Technical Advisory Services
Technical helpsheet to issued to help ICAEW members account for the issue of share options to employees in exchange for their service under FRS 102.
Exclusive Preference shares - equity or liability under FRS 102?
  • Helpsheets and support
  • 17 Jan 2022
  • Technical Advisory Services
Technical helpsheet to help ICAEW members understand how to account for preference shares in the financial statements of both the holder and the issuer under FRS 102.

ICAEW articles and features

Exclusive Accounting for share-based payments
  • Article
  • 01 Feb 2021
  • Martin Howard
  • By All Accounts
Looking at whether it's time to rethink accounting for share-based payments for private companies.

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Exclusive Share-based Payment
  • eBook chapter
  • 2024
  • Steve Collings
  • Financial Reporting for Unlisted Companies in the UK and Republic of Ireland
A chapter providing detailed practical guidance on financial reporting of share-based payments under UK GAAP.
Exclusive Share-based Payments
  • eBook chapter
  • 2023
  • Steve Collings
  • Small Company Financial Reporting
A chapter on share-based payments within the small companies' financial reporting framework and the micro-entities legislation, written by a specialist on small company reporting issues.
Exclusive Share-based Payment
  • eBook chapter
  • 2023
  • Steve Collings
  • Practical Guide to UK Accounting and Auditing Standards
Chapter on share-based payments in a guide to all aspects of UK auditing standards and UK GAAP accounting standards.
Exclusive Share-based payments
  • eBook chapter
  • 2021
  • Julia Penny
  • Accounting Principles for Tax Purposes
A full chapter on accounting for share-based payments under FRS 102, in this accessible introduction to the accounting rules relevant to tax computations in the UK.
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The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Exclusive Share-based payment
  • eBook chapter
  • 2019
  • Rob Carrington, Ernst & Young
  • UK GAAP 2019 - Generally Accepted Accounting Practice under UK and Irish GAAP
Guide from 2019 focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Section 26 and IFRS, and covers general recognition principles, equity-settled transactions, cash-settled transactions, transactions with equity and cash alternatives, replacement share-based payment awards issued in a business combination, group share schemes, disclosures, and taxes related to share-based payment transactions.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

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UK Accounting Plus
  • Website
  • 23 Apr 2024

Overviews of each UK accounting standard, with a history and timeline of key events and amendments.

UK GAAP model accounts and disclosure checklists Example financial statements and disclosure checklists for UK GAAP available from the ICAEW Library & Information Service, Bloomsbury and other sources.

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