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An entity received goods/services for which it issued its own shares at a value DIFFERENT from the FV of the goods received. Under Ind AS 102:
ARecognise the share FV; the difference between share FV and goods FV represents UNIDENTIFIED goods/services within scope of Ind AS 102 — and is recognised as an additional expense or refund-style adjustment as appropriate
BRecognise only the share FV; difference goes directly to equity
CRecognise only the FV of the goods
DRe-measure to the lower of the two FVs
Answer & Solution
Correct answer: A. Recognise the share FV; the difference between share FV and goods FV represents UNIDENTIFIED goods/services within scope of Ind AS 102 — and is recognised as an additional expense or refund-style adjustment as appropriate
When equity-settled SBP for identifiable goods/services results in a different FV than that of those goods/services, the excess/shortfall is treated as unidentified goods/services within Ind AS 102 — preventing simply 'sliding' the difference into equity.
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 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 shA 'MARKET CONDITION' under Ind AS 102 is one that relates to: