By default, directives do not create a new scope. If you want to make that explicit, add scope: false to your directive:
<div ng-click='back()' button='go back!'></div>
angular.module('myApp').directive("button", function () {
return {
scope: false, // this is the default, so you could remove this line
template: "<div><div another-directive></div>{{button}}</div>",
replace: true,
link: function (scope, element, attrs) {
scope.button = attrs.button;
}
};
});
fiddle
Since a new property, button, is being created on the scope, you should normally create a new child scope using scope: true as @ardentum-c has in his answer. The new scope will prototypially inherit from the parent scope, which is why you don't need to put $parent.back() into your HTML.
One other tidbit to mention: even though we are using replace: true, clicking the element still calls back(). That works because "the replacement process migrates all of the attributes / classes from the old element to the new one." -- directive doc
So ng-click='back()' button='go back!' are migrated to the first div in the directive's template.