Home › CA Final › financialreporting › Ind AS 102 — SARs, Group SBP, Market Condition Timing, Modification/Cancellation, Real-World Disclosures › Entity X grants 10 shares each to 1,000 employee…
Entity X grants 10 shares each to 1,000 employees conditional on remaining in service AND PAT reaching ₹100 mn in 3 years. Grant FV ₹100. Expected vesting: 97% (Y1), 95% (Y2), 93% (Y3 actual). Expenses Y1, Y2, Y3?
AOnly Y3: ₹9,30,000
BY1: ₹3,23,333; Y2: ₹3,10,000; Y3: ₹2,96,667 (cumulative based on revised vesting estimate each period)
CLinear ₹3,33,333 each year
DY1: ₹10,00,000; Y2-Y3 reversals
Answer & Solution
Correct answer: B. Y1: ₹3,23,333; Y2: ₹3,10,000; Y3: ₹2,96,667 (cumulative based on revised vesting estimate each period)
Non-market condition: number of expected vesting shares revises each period. Y1: 1,000×10×100×97%×1/3 = ₹3,23,333. Y2 cumulative: 95%×2/3 = ₹6,33,333; incremental ₹3,10,000. Y3 cumulative: 93%×3/3 = ₹9,30,000; incremental ₹2,96,667.
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