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CA Final · Financial Reporting · Ind AS 102 Share Based Payment

Aarav Textiles Ltd adopted Ind AS 102 amendments on classification and measurement of share-based payment transactions (paragraph 63D). The amendments apply for annual periods beginning on or after 1 April 2017. The CFO considers applying them retrospectively. Which statement is consistent with paragraph 59B?

Retrospective application is allowed only if it is possible without hindsight, and an entity electing it must apply all of the amendments made by the classification and measurement amendments. Selective adoption is not permitted, and retrospective application is not mandatory.

  1. ARetrospective application is mandatory for all entities
  2. BRetrospective application may be elected for only the amendments relevant to the entity, one at a time
  3. CRetrospective application is permitted if and only if possible without hindsight, and if elected it must be applied to all the amendmentsCorrect
  4. DRetrospective application is prohibited and the amendments are applied only prospectively

Explanation

Paragraph 59B allows retrospective application in accordance with Ind AS 8 only if possible without hindsight. If elected, it must be done for all of the amendments made by the Amendments to Classification and Measurement of Share-based Payment Transactions. Option B is wrong because selective application is not permitted.

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