Home › CA Final › financialreporting › Ind AS 102 — Vesting Conditions in Practice, Market vs Non-Market, Non-Vesting Conditions, Cash-Alternative Compound SBP › A 'NON-VESTING' condition under Ind AS 102 is:
A 'NON-VESTING' condition under Ind AS 102 is:
AA reload feature
BA condition that does NOT determine whether the entity receives the services — it does not affect the counterparty's vesting eligibility (e.g. a non-compete clause that doesn't reverse entitlement). Like market conditions, baked into grant-date FV with NO true-up
CAn anti-dilution feature
DA condition the entity has no influence over but that determines whether the counterparty rises to vesting
Answer & Solution
Correct answer: B. A condition that does NOT determine whether the entity receives the services — it does not affect the counterparty's vesting eligibility (e.g. a non-compete clause that doesn't reverse entitlement). Like market conditions, baked into grant-date FV with NO true-up
Non-vesting conditions don't determine whether services are received and don't affect vesting eligibility. Like market conditions: baked into grant-date FV; expense not reversed if condition fails.
Related questions
Under Ind AS 102, a RELOAD FEATURE is treated as:An entity granted share options with VESTING period 3 years. After Year 2, the EMPLOYEE LEContinuing compound SBP: if employee chooses EQUITY alternative (2,400 shares; face value Continuing compound SBP: 3-year vesting. Year-end share price: Y1 ₹52, Y2 ₹55, Y3 ₹60. ExpAn employee is granted right to choose 2,000 shares (cash payment based on FV of 2,000 shaApple Ltd grants 10,000 share options requiring 3 years' service + 20% share-price growth Continuing Ankita example: at end of 20X2, earnings grew 18% (not 20%), so target shifts tAnkita Ltd. grants 100 shares each to 500 employees on 1 Jan 20X1, conditional on (a) serv