alleryStart learning →After vesting date, total equity recognised for vested options is
Arevalued yearly
Bmarked to share price
Creversed on forfeit
Dleft unadjusted
Answer & Solution
Correct answer: D. left unadjusted
Once vested, no further change is made to total equity, even if the vested instruments are later forfeited or not exercised.
Keep practising Ind AS 102 Share Based Payment
Browse all Ind AS 102 Share Based Payment questions for CA Final, or explore more Financialreporting topics.
Related questions
2,000 SARs vest immediately with fair value Rs 35 each. Liability recognised at once isRs 200,000 was booked over 2 years, then a non-market profit target fails. Net cumulative 10 staff get 1,000 options each, FV Rs 25 with a 5-year share price target. Annual charge Total expected cost of a 4-year equity-settled plan is Rs 480,000 with no forfeitures. YeaSame SARs, year 2: 48 staff vest, fair value Rs 18, liability so far Rs 175,000. Year 2 ex50 staff hold 500 SARs each, 2-year vesting. SAR fair value is Rs 14 at end of year 1. YeaRepricing lifts fair value of 1,000 options from Rs 8 to Rs 11. Incremental fair value is1,000 vested options bought back at Rs 80 each when fair value is Rs 70. Expense recognise