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An equity-settled SBP is CANCELLED (including due to non-vesting conditions not being met). Per Ind AS 102:
AReverse the expense recognised to date
BDefer recognition to next year
CCapitalise unrecognised expense to goodwill
DTreat the cancellation as an ACCELERATED VESTING: any unrecognised expense for the award is recognised IMMEDIATELY in P&L
Answer & Solution
Correct answer: D. Treat the cancellation as an ACCELERATED VESTING: any unrecognised expense for the award is recognised IMMEDIATELY in P&L
Cancellation of an equity-settled award triggers accelerated recognition of any remaining unrecognised grant-date FV. This prevents entities from cancelling awards to escape future expense.
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