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CA Final Ind AS 102 — SARs, Group SBP, Market Condition Timing, Modification/Cancellation, Real-World Disclosures — practice questions
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Practice CA Final Ind AS 102 — SARs, Group SBP, Market Condition Timing, Modification/Cancellation, Real-World Disclosures in the app →Under Ind AS 102, a Share Appreciation Right (SAR) settled in CASH is accounted as:An equity-settled SBP is CANCELLED (including due to non-vesting conditions not being met). Per Ind AS 102:A parent issues its own shares to employees of a SUBSIDIARY. The subsidiary's accounting in its own books is:An entity issued 100 shares each to 1,000 employees subject to 2-year service condition. Grant date FV ₹195. EContinuing: at end of Y2, 91% vested. Compute Y2 expense.An entity issued 50 shares each to 170 employees, settled in CASH after 2 years. Grant FV ₹85; Y1 FV ₹80; Y2 FEntity P issues SBP requiring (i) share price reaching ₹30 (market condition) AND (ii) service until that targEntity P issues SBP; market condition expected in 4 years; actually fulfilled in Y5 (a year late). Identify exEntity X grants 10 shares each to 1,000 employees conditional on remaining in service AND PAT reaching ₹100 mnAmbani Ltd grants CEO option (1 Jan 20X0) to take 800 shares' cash equivalent OR 990 shares (3-year holding). MINDA issued 11,000 SARs vesting immediately on 1 Apr 20X0. SAR FV ₹100 grant; ₹132 (Y1), ₹139 (Y2), ₹141 (Y3)Continuing MINDA SAR: at end Y2, FV = ₹139; expected exercise 91%. Compute Y2 incremental expense.Continuing MINDA SAR: at Y3 end, FV ₹141; actual exercise 85%. Compute Y3 incremental expense.An entity MODIFIES an equity-settled SBP after grant date, increasing fair value (favourable to employee). PerBharti Airtel's disclosed accounting policy: 'expense determined by grant date FV which INCLUDES impact of MARBharti Airtel uses Black-Scholes for SBP valuation. Key inputs disclosed include risk-free interest rates, exp