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CA Final Ind AS 102 — Vesting Conditions in Practice, Market vs Non-Market, Non-Vesting Conditions, Cash-Alternative Compound SBP — practice questions
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Practice CA Final Ind AS 102 — Vesting Conditions in Practice, Market vs Non-Market, Non-Vesting Conditions, Cash-Alternative Compound SBP in the app →Under Ind AS 102, vesting conditions (other than MARKET conditions) are accounted for by:Under Ind AS 102, MARKET conditions (e.g. share-price target) are accounted for by:A 'NON-VESTING' condition under Ind AS 102 is:An entity issues SOPs requiring 3 years' service + share price to reach ₹100. Identify EACH condition's natureAn entity grants options conditional on 4 years' service + sales growth target. EBITDA target is a non-market An entity grants 10,000 share options requiring 3 years' service + 10% cumulative cost reduction. Year 1: 12% An entity grants options conditional on the employee NOT competing with the entity for 3 years post-vesting (aAnkita Ltd. grants 100 shares each to 500 employees on 1 Jan 20X1, conditional on (a) service AND (b) earningsContinuing Ankita example: at end of 20X2, earnings grew 18% (not 20%), so target shifts to Y3. Actual leaversApple Ltd grants 10,000 share options requiring 3 years' service + 20% share-price growth (market condition). An employee is granted right to choose 2,000 shares (cash payment based on FV of 2,000 shares) OR 2,400 sharesContinuing compound SBP: 3-year vesting. Year-end share price: Y1 ₹52, Y2 ₹55, Y3 ₹60. Expense and balances atContinuing compound SBP: if employee chooses EQUITY alternative (2,400 shares; face value ₹10 each):An entity granted share options with VESTING period 3 years. After Year 2, the EMPLOYEE LEAVES. Cumulative expUnder Ind AS 102, a RELOAD FEATURE is treated as: