IFRS 2 - Share-based Payment is a standard issued by the International Financial Reporting Standards (IFRS) that mandates how entities account for and report share-based payment transactions. These transactions might include granting shares, share options, or similar equity instruments to employees or other parties in exchange for goods or services.

The standard requires companies to recognize the expense associated with share-based payments in their income statement, reflecting the fair value of the given instruments. Fair value should be measured at the grant date and will differ depending on whether the awards are equity- or cash-settled. Equity-settled share-based payments, such as issuing shares to employees, require valuation using market-based factors like share prices, while cash-settled share-based payments involve remeasurement at every reporting date.

For example, if a company grants an employee share options as a part of their compensation package, IFRS 2 requires the company to measure the value of these options on the grant date and recognize this cost over the vesting period for these options. This allows stakeholders to see the impact of such share-based payment transactions on the company's financials.

IFRS 2 ensures transparency and uniformity in reporting share-based payments, enabling comparability among financial statements of different entities.