Home › CA Final › financialreporting › Ind AS 102 — Share-based Payment: Scope, Grant Date, Vesting Conditions, Equity-settled vs Cash-settled › Ind AS 102 distinguishes between transactions wh…
Ind AS 102 distinguishes between transactions where the entity SETTLES via own equity vs by transferring CASH based on equity prices. The two main categories are:
AListed-share and unlisted-share
BService-based and performance-based
CEquity-settled and cash-settled share-based payment transactions (plus combinations with choice of settlement)
DTax-deductible and non-deductible
Answer & Solution
Correct answer: C. Equity-settled and cash-settled share-based payment transactions (plus combinations with choice of settlement)
Ind AS 102 classifies share-based payments as: equity-settled (entity issues own equity), cash-settled (entity pays cash based on equity prices), or compound with settlement choice.
Related questions
A vesting condition that requires the counterparty to complete a specified period of serviUnder Ind AS 102, transactions with parties OTHER THAN EMPLOYEES (e.g. service providers) Reload Feature/Reload Option under Ind AS 102 is BEST described as:An entity received goods/services for which it issued its own shares at a value DIFFERENT An entity issues its OWN shares to a CHARITY without any consideration. Under Ind AS 102:An entity issues shares for ₹1,000 each (current equity FV ₹1,000), payable in cash by empAn entity grants share options conditional on (i) 4 years of continuous service AND (ii) sAn entity grants share options with EXERCISE PRICE conditional on a 30% increase in the sh