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

Meghna Pharma Ltd is a first-time adopter. Its employees were granted equity instruments that vested before the date of transition, and the company has not applied Ind AS 102 to them. What is the requirement under Ind AS 101?

Meghna Pharma need not apply Ind AS 102 to equity instruments that vested before the transition date, though it is encouraged to. For grants where it does not apply Ind AS 102, it must still give the disclosures required by paragraphs 44 and 45 of Ind AS 102.

  1. AInd AS 102 must be applied retrospectively to these grants, with no choice
  2. BNo disclosure is required because the grants vested before transition
  3. CThe company must remeasure the grants at fair value on the transition date
  4. DApplication of Ind AS 102 is encouraged but not required; for grants where it is not applied, the disclosures in paragraphs 44 and 45 of Ind AS 102 must still be givenCorrect

Explanation

Ind AS 101 encourages but does not require application of Ind AS 102 to equity instruments vested before the transition date. Where it is not applied, the first-time adopter must still disclose the information required by paragraphs 44 and 45 of Ind AS 102. Option B is wrong because disclosure remains mandatory.

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