Home › CA Final › financialreporting › Ind AS 103 — Reverse Acquisition Mechanics, Replacement Awards, Contingent vs Deferred Consideration & NCI Methods › Under Ind AS 103, when an acquirer's share-based…
Under Ind AS 103, when an acquirer's share-based payment award REPLACES an acquiree's award that was issued before the business combination, the portion attributable to PRE-COMBINATION service is included in:
ANeither — the original award lapses
BGoodwill directly
CPost-combination employee compensation expense over the remaining vesting period
DThe purchase consideration (effectively part of what was paid for the acquisition)
Answer & Solution
Correct answer: D. The purchase consideration (effectively part of what was paid for the acquisition)
The pre-combination service portion of the replacement award value is included in CONSIDERATION TRANSFERRED. The post-combination service portion is recognised as remuneration expense over the post-combination vesting period.
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