Rob Wessels, joint head of corporate finance at Nedbank Capital, says international financial reporting standard two (IFRS 2) deals with the need to account for share-based payments.

"New accounting standards are being applied around the world," Wessels says.

"IFRS 2 deals with the manner in which a company brings the cost of ordinary share-based payments, usually employee share schemes, through its income statement. However, the accounting standard has serious implications for empowerment transactions, as its goal is to inform shareholders of the effect of any share-based payment on the value of the company."

He says there have been several meetings internationally to decide the manner in which IFRS 2 should be applied in the context of the South African empowerment environment. "It is difficult to cost these transactions, define the point at which the cost comes through and the manner in which it manifests itself."