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CA Final · Financial Reporting · Ind AS 101 First-time Adoption of Ind AS

Kalyani Engineering Ltd has been granted employee stock options that fully vested before its date of transition to Ind AS. Management wants to know the treatment under the Ind AS 101 exemption on share-based payment. Which statement is correct?

Application of Ind AS 102 to options that vested before the transition date is encouraged but not mandatory. If the company does not apply it, it must still give the disclosures required by paragraphs 44 and 45 of Ind AS 102 for those grants.

  1. AInd AS 102 must be applied retrospectively to these options, with no choice
  2. BThe company is encouraged but not required to apply Ind AS 102 to them, and if it does not, it must still disclose the information required by paragraphs 44 and 45 of Ind AS 102Correct
  3. CThe company need not apply Ind AS 102 and is also exempt from every Ind AS 102 disclosure for these options
  4. DThe company may apply Ind AS 102 to them only if it did not disclose their fair value publicly

Explanation

Ind AS 101 encourages but does not require application of Ind AS 102 to equity instruments vested before the transition date. If it is not applied, the disclosures in paragraphs 44 and 45 of Ind AS 102 are still required. Option C is wrong because those disclosures are not waived.

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