Home › CA Final › financialreporting › Ind AS 102 — SARs, Group SBP, Market Condition Timing, Modification/Cancellation, Real-World Disclosures › Under Ind AS 102, a Share Appreciation Right (SA…
Under Ind AS 102, a Share Appreciation Right (SAR) settled in CASH is accounted as:
ACash-settled SBP — initially measured at FV; the liability is REMEASURED to FV at each reporting date AND at settlement, with changes in P&L
BRecognised as a financial asset
CCash settled only at settlement
DEquity-settled SBP with no remeasurement
Answer & Solution
Correct answer: A. Cash-settled SBP — initially measured at FV; the liability is REMEASURED to FV at each reporting date AND at settlement, with changes in P&L
Cash-settled SBP (including SARs) carries a liability remeasured to FV each period and at settlement. Changes flow through P&L. Equity-settled awards are measured at grant-date FV and NOT remeasured.
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Bharti Airtel uses Black-Scholes for SBP valuation. Key inputs disclosed include risk-freeBharti Airtel's disclosed accounting policy: 'expense determined by grant date FV which INAn entity MODIFIES an equity-settled SBP after grant date, increasing fair value (favourabContinuing MINDA SAR: at Y3 end, FV ₹141; actual exercise 85%. Compute Y3 incremental expeContinuing MINDA SAR: at end Y2, FV = ₹139; expected exercise 91%. Compute Y2 incremental MINDA issued 11,000 SARs vesting immediately on 1 Apr 20X0. SAR FV ₹100 grant; ₹132 (Y1), Ambani Ltd grants CEO option (1 Jan 20X0) to take 800 shares' cash equivalent OR 990 shareEntity X grants 10 shares each to 1,000 employees conditional on remaining in service AND