Home › CA Final › financialreporting › Ind AS 102 — SARs, Group SBP, Market Condition Timing, Modification/Cancellation, Real-World Disclosures › An entity issued 100 shares each to 1,000 employ…
An entity issued 100 shares each to 1,000 employees subject to 2-year service condition. Grant date FV ₹195. Expected vesting: 97% Y1, 91% Y2 actual. Compute Y1 expense.
A₹1,77,45,000
B₹94,57,500 (= 100 × 1,000 × 195 × 97% × 1/2)
C₹97,50,000 (= 100 × 1,000 × 195 × 1/2)
D₹1,89,15,000
Answer & Solution
Correct answer: B. ₹94,57,500 (= 100 × 1,000 × 195 × 97% × 1/2)
Equity-settled SBP with service condition: expense = grant-date FV × expected number to vest × proportionate vesting period. Y1 = 100 × 1,000 × 195 × 97% × 1/2 = ₹94,57,500.
Related questions
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