Home › CA Final › financialreporting › Ind AS 102 — Share-based Payment: Scope, Grant Date, Vesting Conditions, Equity-settled vs Cash-settled › An entity issues its OWN shares to a CHARITY wit…
An entity issues its OWN shares to a CHARITY without any consideration. Under Ind AS 102:
ATreated as dividend
BWithin Ind AS 102 (share-based payment ARRANGEMENT, not transaction) — Ind AS 102 captures share-based payment arrangements that may or may not involve identified goods/services; unidentified consideration is also captured
CTreated as donation only, with no equity impact
DOutside Ind AS 102 — no goods or services received
Answer & Solution
Correct answer: B. Within Ind AS 102 (share-based payment ARRANGEMENT, not transaction) — Ind AS 102 captures share-based payment arrangements that may or may not involve identified goods/services; unidentified consideration is also captured
Ind AS 102 covers SBP ARRANGEMENTS irrespective of whether identifiable goods/services are received. Where the entity issues equity without identifiable consideration, the difference is treated as 'unidentified goods/services' expense (an Ind AS 102 P&L charge).
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 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 shA 'MARKET CONDITION' under Ind AS 102 is one that relates to: