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CMA Final · Corporate Financial Reporting · Share based Payment (Ind AS 102)

Ind AS 102 Share-based Payment uses the term 'fair value' in a way that differs in some respects from Ind AS 113 Fair Value Measurement. How should an entity measure fair value when applying Ind AS 102?

Fair value under a share-based payment is measured as Ind AS 102 itself requires. Ind AS 113 is not applied, because the term is used differently in Ind AS 102. This holds regardless of whether the transaction is equity-settled or cash-settled.

  1. AIn accordance with Ind AS 113, because it is the single standard on fair value
  2. BIn accordance with Ind AS 102 itself, not Ind AS 113Correct
  3. CBy using Ind AS 113 for equity-settled transactions and Ind AS 102 for cash-settled transactions
  4. DBy using the intrinsic value of the instrument at each reporting date

Explanation

Ind AS 102 states that, because its use of fair value differs in some respects from Ind AS 113, an entity applying Ind AS 102 measures fair value in accordance with Ind AS 102 and not Ind AS 113. The split by settlement type in the third option has no basis in the standard.

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