Briefly, discuss the recognition and measurement requirements of IFRS 2.

IFRS 2 requires companies to recognize the fair value of equity-settled share-based payment transactions as an expense in their financial statements. This expense is recognized over the vesting period of the equity instruments granted to employees or other parties.

For cash-settled share-based payment transactions, the fair value of the liability is recognized as an expense in the financial statements. The liability is re-measured at each reporting date until it is settled.

Measurement of the fair value of share-based payment transactions is based on the fair value of the equity instruments granted, taking into account any market conditions or restrictions that may affect the value of the instruments. The fair value is determined using valuation techniques such as option pricing models.