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A vesting condition that requires the counterparty to complete a specified period of service AND meet a specific performance target is a:
APure service condition
BReload feature
CMarket condition
DPerformance condition — requires service period to be completed AND a performance target (market or non-market) to be met during the service period
Answer & Solution
Correct answer: D. Performance condition — requires service period to be completed AND a performance target (market or non-market) to be met during the service period
Performance conditions inherently embed a service requirement plus a performance metric. The performance target may be a market condition (price-related) or a non-market condition (sales, profits, market share, store openings, etc.).
Related questions
Under 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 shA 'MARKET CONDITION' under Ind AS 102 is one that relates to: