Home › CA Final › financialreporting › Ind AS 102 — Share-based Payment: Scope, Grant Date, Vesting Conditions, Equity-settled vs Cash-settled › For transactions with EMPLOYEES, Ind AS 102 meas…
For transactions with EMPLOYEES, Ind AS 102 measures the equity-settled SBP at:
AFair value of the goods/services received
BIntrinsic value at exercise
CFair value of the equity instruments granted at GRANT DATE (because employee services FV is typically not directly measurable)
DFair value at vesting date
Answer & Solution
Correct answer: C. Fair value of the equity instruments granted at GRANT DATE (because employee services FV is typically not directly measurable)
For employee SBPs, the fair value of services rendered is typically not directly measurable, so Ind AS 102 measures via FV of equity instruments granted at GRANT DATE — fixed at that date and not subsequently remeasured (subject to revisions for non-market vesting conditions).
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