Home › CA Final › financialreporting › Ind AS 102 — Share-based Payment: Scope, Grant Date, Vesting Conditions, Equity-settled vs Cash-settled › An entity issued RIGHT SHARES (rights issue) to …
An entity issued RIGHT SHARES (rights issue) to ALL existing shareholders, INCLUDING employees. The grant of rights:
AIs partially covered (only employee portion)
BIs NOT covered by Ind AS 102 — employees receive the rights in their capacity as SHAREHOLDERS, not employees
CIs covered by Ind AS 102
DIs covered only if rights are issued at a discount
Answer & Solution
Correct answer: B. Is NOT covered by Ind AS 102 — employees receive the rights in their capacity as SHAREHOLDERS, not employees
Ind AS 102 explicitly excludes transactions where the counterparty acts in capacity as a shareholder. Rights issues to all shareholders fall outside scope, even if some recipients are also employees.
Related questions
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