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

Ananya Textiles Ltd's employees receive shares of the company under a scheme, and Ind AS 102 is applied. The finance team wants to measure the fair value of the equity instruments granted. Which statement is correct as per the Standard's scope paragraph?

Fair value for share-based payments is measured in accordance with Ind AS 102 itself, not Ind AS 113. The Standard uses the term fair value differently in some respects from Ind AS 113, so the share-based payment Standard's own measurement requirements apply to these transactions.

  1. AFair value is measured under Ind AS 113 because it is the only fair value standard
  2. BFair value is measured in accordance with Ind AS 102, not Ind AS 113, because the term is used differently in some respectsCorrect
  3. CFair value is measured under Ind AS 8 as an accounting estimate
  4. DFair value is measured under Ind AS 113 for equity-settled and Ind AS 102 only for cash-settled transactions

Explanation

Paragraph 6A states that Ind AS 102 uses 'fair value' in a way that differs in some respects from Ind AS 113. An entity therefore measures fair value under Ind AS 102, not Ind AS 113. The last option wrongly splits the treatment by settlement type; the paragraph makes no such distinction.

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