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

Mehta Auto Ltd adopts Ind AS and has share-based payment awards. Its CFO asks about the amendments titled 'Classification and Measurement of Share-based Payment Transactions' that added paragraphs 33A-33H and B44A-B44C. Which statement is correct per Ind AS 102 text?

The amendments apply to annual periods beginning on or after 1 April 2017. Retrospective application is optional, permitted only if possible without hindsight, and if chosen it must cover all the amendments made by that set, not merely selected ones.

  1. AThey apply for annual periods beginning on or after 1 April 2017, and retrospective application is allowed only if possible without hindsight, and then for all the amendmentsCorrect
  2. BThey apply only to periods beginning on or after 1 April 2021
  3. CRetrospective application may be elected for any single amendment separately, with hindsight permitted
  4. DThey apply only prospectively and retrospective application is prohibited

Explanation

Paragraph 63D gives 1 April 2017 as the effective date. Paragraph 59B allows retrospective application in accordance with Ind AS 8 only if possible without hindsight, and if elected it must be for all the amendments. Selective application or hindsight is therefore wrong; 1 April 2021 relates to the Conceptual Framework reference amendment.

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