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CMA Final · Corporate Financial Reporting · Share based Payment (Ind AS 102)

Under Ind AS 102, which statement about the term 'fair value' used within the Standard is correct?

Ind AS 102 uses fair value differently in some respects from Ind AS 113. Therefore an entity applying Ind AS 102 measures fair value in accordance with that Standard itself and not Ind AS 113, as paragraph 6A specifically provides.

  1. AFair value for share-based payments is always measured exactly as per Ind AS 113
  2. BInd AS 102 uses 'fair value' in a way that differs in some respects from Ind AS 113, so fair value is measured per Ind AS 102, not Ind AS 113Correct
  3. CInd AS 102 prohibits the use of fair value for equity instruments granted
  4. DFair value under Ind AS 102 is measured using Ind AS 115 principles

Explanation

Paragraph 6A states that Ind AS 102 uses 'fair value' differently from Ind AS 113 in some respects. Hence, when applying Ind AS 102, an entity measures fair value in accordance with Ind AS 102 and not Ind AS 113. Option A is wrong because it ignores this carve-out.

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