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

Gomti Engineering Ltd, a listed company, has an equity-settled share option scheme whose terms were set before 1 April 2017 and now wants to apply the amendments on classification and measurement of share-based payment transactions retrospectively. Per para 59B, which statement is correct?

The entity may apply the amendments retrospectively under Ind AS 8 only if this is possible without hindsight, and if it elects retrospective application it must apply it to all the amendments made by the classification and measurement amendments. Selective application of individual amendments is not permitted.

  1. ARetrospective application is allowed at the entity's option for any single amendment, if possible without hindsight
  2. BRetrospective application is allowed only if possible without hindsight, and if elected it must apply to all the amendmentsCorrect
  3. CRetrospective application is mandatory for all entities under Ind AS 8
  4. DRetrospective application is prohibited because the amendments apply only to periods beginning on or after 1 April 2017

Explanation

Para 59B permits retrospective application of the amendments in para 63D in accordance with Ind AS 8, if and only if it is possible without hindsight. If elected, it must be done for all the amendments. Picking a single amendment is therefore not allowed.

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