Home › CA Final › financialreporting › Ind AS 102 — Vesting Conditions in Practice, Market vs Non-Market, Non-Vesting Conditions, Cash-Alternative Compound SBP › Under Ind AS 102, a RELOAD FEATURE is treated as:
Under Ind AS 102, a RELOAD FEATURE is treated as:
AA non-vesting condition
BAlways anti-dilutive
CNOT taken into account in estimating the FV of options granted at measurement date; instead, a reload option is accounted for as a NEW option grant if and when it is subsequently triggered
DEmbedded in the grant-date FV of the original option
Answer & Solution
Correct answer: C. NOT taken into account in estimating the FV of options granted at measurement date; instead, a reload option is accounted for as a NEW option grant if and when it is subsequently triggered
Reload features are ignored at grant-date FV measurement of the original option. If/when a reload option is granted (typically on share-swap exercise of the original), the reload is treated as a new option grant with its own grant-date measurement.
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