Home › CA Final › financialreporting › Ind AS 102 — Share-based Payment: Scope, Grant Date, Vesting Conditions, Equity-settled vs Cash-settled › An entity's parent issues share options to the E…
An entity's parent issues share options to the EMPLOYEES of a subsidiary, settled in the parent's equity. Under Ind AS 102:
AOutside Ind AS 102 because the entity (subsidiary) is not the issuer
BTreated as a Ind AS 24 related party disclosure only
CTreated as an intercompany transaction only
DWithin Ind AS 102 — the subsidiary receives services from employees; transactions where a GROUP entity settles the arrangement are explicitly within scope. The subsidiary recognises the expense; equity-settled treatment for the subsidiary
Answer & Solution
Correct answer: D. Within Ind AS 102 — the subsidiary receives services from employees; transactions where a GROUP entity settles the arrangement are explicitly within scope. The subsidiary recognises the expense; equity-settled treatment for the subsidiary
Ind AS 102 covers group-entity settlement of SBPs. The subsidiary receiving services accounts for the expense; the parent's contribution is reflected in equity. Both sides apply Ind AS 102.
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