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CA Final Ind AS 102 Share Based Payment — practice questions — page 2

Explore 60 free Ind AS 102 Share Based Payment questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 102 Share Based Payment questions and exercises with answers

Showing questions 31–60 of 60.

Share appreciation rights paying cash on share price rise are accounted asRead the answer and worked solution →Share appreciation rights that vest immediately lead to recognition ofRead the answer and worked solution →A liability for share appreciation rights is valued by applyingRead the answer and worked solution →Entity chooses settlement and has no present cash obligation. Accounting follows the rules forRead the answer and worked solution →Entity elects cash where it had no cash obligation. The cash paid is treated asRead the answer and worked solution →A group subsidiary receives services paid with its own shares. It records anRead the answer and worked solution →A group entity settling for another group entity's staff uses the equity-settled basis only if it pays inRead the answer and worked solution →The main disclosure principle in Ind AS 102 concerns the nature andRead the answer and worked solution →The option movement disclosure lists how many groups of options?Read the answer and worked solution →Which input to an option pricing model must be disclosed?Read the answer and worked solution →For options exercised in the period, what share price must be disclosed?Read the answer and worked solution →A share has fair value Rs 20 and an option on it has exercise price Rs 15. Intrinsic value per option isRead the answer and worked solution →500 options have exercise price Rs 120 and the share is worth Rs 150. Total intrinsic value isRead the answer and worked solution →For Ind AS 102, employees include non-executive directors because theyRead the answer and worked solution →A performance condition always requires the counterparty to completeRead the answer and worked solution →A performance target linked to the entity's own profit is aRead the answer and worked solution →A target of beating an index of share prices of other entities is aRead the answer and worked solution →200 staff get 100 options each, FV Rs 12, 3-year vesting, 10% expected to leave. Year 1 expense?Read the answer and worked solution →Same plan, year 2: expected leavers now 15%. Cumulative credit is two thirds. Year 2 expense?Read the answer and worked solution →Same plan, year 3: 175 staff vest. Cumulative expense to date was Rs 136,000. Year 3 expense?Read the answer and worked solution →1,000 options with grant date fair value Rs 40 vest immediately. Expense on grant date?Read the answer and worked solution →A 3-year plan worth Rs 900,000 is cancelled after year 1 (Rs 300,000 booked). Expense on cancellation?Read the answer and worked solution →1,000 vested options bought back at Rs 80 each when fair value is Rs 70. Expense recognised?Read the answer and worked solution →Repricing lifts fair value of 1,000 options from Rs 8 to Rs 11. Incremental fair value isRead the answer and worked solution →50 staff hold 500 SARs each, 2-year vesting. SAR fair value is Rs 14 at end of year 1. Year 1 expense?Read the answer and worked solution →Same SARs, year 2: 48 staff vest, fair value Rs 18, liability so far Rs 175,000. Year 2 expense?Read the answer and worked solution →Total expected cost of a 4-year equity-settled plan is Rs 480,000 with no forfeitures. Yearly charge?Read the answer and worked solution →10 staff get 1,000 options each, FV Rs 25 with a 5-year share price target. Annual charge if all stay?Read the answer and worked solution →Rs 200,000 was booked over 2 years, then a non-market profit target fails. Net cumulative expense ends atRead the answer and worked solution →2,000 SARs vest immediately with fair value Rs 35 each. Liability recognised at once isRead the answer and worked solution →

Worked practice questions

Share appreciation rights paying cash on share price rise are accounted as

  1. cash-settled
  2. equity-settled
  3. bonus issues
  4. rights issues
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Correct answer: A. cash-settled

Rights giving a future cash payment based on the share price increase create a liability and so are cash-settled.

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Share appreciation rights that vest immediately lead to recognition of

  1. nothing until payment
  2. a liability at once
  3. only a disclosure
  4. a reserve over time
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Correct answer: B. a liability at once

With no service period required, the services are presumed received, so cost and the liability are recognised immediately.

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A liability for share appreciation rights is valued by applying

  1. the book value method
  2. a discounted dividend method
  3. an option pricing model
  4. a replacement cost method
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Correct answer: C. an option pricing model

The fair value of the rights is derived with an option pricing model that reflects their terms and the service rendered so far.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property