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

Sagar Foods Ltd adopted Ind AS and has share-based payment arrangements. The Ind AS 102 amendments on Classification and Measurement of Share-based Payment Transactions apply for annual periods beginning on or after 1 April 2017 (para 63D). Sagar Foods wishes to apply these amendments retrospectively. Which condition applies under para 59B?

Sagar Foods may apply the amendments retrospectively only if that is possible without hindsight, and if it elects to do so it must apply all of the amendments made by the Classification and Measurement amendments. Selective or mandatory retrospective application is not permitted.

  1. ARetrospective application is permitted if and only if it is possible without hindsight, and it must then be done for all the amendmentsCorrect
  2. BRetrospective application is permitted for any single amendment chosen by the entity
  3. CRetrospective application is mandatory for all entities
  4. DRetrospective application is prohibited, as the amendments apply prospectively only

Explanation

Para 59B allows retrospective application in accordance with Ind AS 8 if and only if it is possible without hindsight. If elected, it must be done for all of the amendments made. Selective application is therefore not allowed, and retrospective application is not mandatory or prohibited.

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