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

Rohini Steels Ltd had a cash-settled share-based payment arrangement. It applies the 2017 amendments (Classification and Measurement of Share-based Payment Transactions) to Ind AS 102 and wishes to apply them retrospectively for annual periods beginning on or after 1 April 2017. Which statement is correct about the transitional election under Ind AS 102?

Retrospective application is permitted only if it is possible without hindsight, and if the entity elects it, it must apply it to all the amendments made by the Classification and Measurement of Share-based Payment Transactions amendments, not selectively.

  1. ARetrospective application is allowed for any single amendment chosen individually, with or without hindsight
  2. BRetrospective application is allowed if and only if it is possible without hindsight, and if elected it must apply to all the amendmentsCorrect
  3. CRetrospective application is prohibited and only prospective application is permitted
  4. DRetrospective application is allowed using hindsight if it reduces expense

Explanation

Per the transitional provisions, an entity may apply the amendments retrospectively in accordance with Ind AS 8 only if it is possible without hindsight. If it elects retrospective application, it must do so for all the amendments. Picking individual amendments or using hindsight is not permitted.

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