Home › CA Final › financialreporting › Ind AS 102 — Share-based Payment: Scope, Grant Date, Vesting Conditions, Equity-settled vs Cash-settled › Reload Feature/Reload Option under Ind AS 102 is…
Reload Feature/Reload Option under Ind AS 102 is BEST described as:
AA feature that converts options to bonus shares automatically
BA feature that automatically grants additional share options when the option holder exercises previously granted options using the entity's shares (rather than cash) to satisfy the exercise price
CA feature that allows lapsed options to be re-issued
DA feature that resets the exercise price annually
Answer & Solution
Correct answer: B. A feature that automatically grants additional share options when the option holder exercises previously granted options using the entity's shares (rather than cash) to satisfy the exercise price
A reload feature triggers additional option grants when an existing option is exercised via swap of own shares (rather than cash). This compensates the holder for the depletion of share holdings used to satisfy exercise. Ind AS 102 has specific guidance on reload options.
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) 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 shA 'MARKET CONDITION' under Ind AS 102 is one that relates to: