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Under Ind AS 101, an entity may avail an exemption for SHARE-BASED PAYMENTS so that:
AIt need NOT restate the accounting for share-based payment awards that VESTED before the date of transition; awards not yet vested at transition ARE accounted for under Ind AS 102
BIt is exempt from all share-based payment accounting forever
COnly fair-value-method companies can avail the exemption
DIt must restate all historical ESOP grants going back to inception
Answer & Solution
Correct answer: A. It need NOT restate the accounting for share-based payment awards that VESTED before the date of transition; awards not yet vested at transition ARE accounted for under Ind AS 102
The exemption applies the convenience that ALREADY-VESTED equity-settled awards keep their previous-GAAP accounting (often intrinsic value method under earlier ICAI Guidance Note), while AWARDS NOT YET VESTED at the transition date must be restated under Ind AS 102 (fair value at grant date). This balances cost and benefit cleanly.
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