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

Gujarat Steels Ltd adopted Ind AS and applies the amendments on Classification and Measurement of Share-based Payment Transactions retrospectively. In accordance with the transitional provision, which statement is correct?

Retrospective application is permitted only if it is possible without hindsight, and an entity electing it must apply all of the amendments made by the Classification and Measurement of Share-based Payment Transactions amendments. Selective adoption of only some amendments is not allowed.

  1. AIt may choose retrospective application for only some of the amendments
  2. BRetrospective application is allowed if and only if it is possible without hindsight, and must then apply to all the amendmentsCorrect
  3. CRetrospective application is mandatory under Ind AS 8 in every case
  4. DRetrospective application is allowed with the use of hindsight where it is helpful

Explanation

Paragraph 59B allows retrospective application per Ind AS 8 if and only if it is possible without hindsight. If elected, it must be done for all amendments made by the Classification and Measurement amendments. Selective application and hindsight are therefore both not permitted.

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