Home › CA Final › financialreporting › Ind AS 102 — Share-based Payment: Scope, Grant Date, Vesting Conditions, Equity-settled vs Cash-settled › A 'MARKET CONDITION' under Ind AS 102 is one tha…
A 'MARKET CONDITION' under Ind AS 102 is one that relates to:
ASales target
BNumber of new stores opened
CThe market price (or related metric) of the entity's own equity instruments or of equity instruments of another group entity
DEBITDA target
Answer & Solution
Correct answer: C. The market price (or related metric) of the entity's own equity instruments or of equity instruments of another group entity
Market conditions = conditions tied to market prices (e.g. target share price, target index outperformance, intrinsic value at vesting). Sales/EBITDA/store-opening targets are non-market performance conditions. The distinction matters: market conditions are baked into grant-date FV and NOT trued up later.
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