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

Vihaan Ltd, a first-time adopter, has equity instruments granted to employees that vested before the date of transition to Ind AS. Which statement is correct under Ind AS 101?

Applying Ind AS 102 to equity instruments vested before transition is encouraged but not required, and is permitted only if the entity publicly disclosed their fair value determined at the measurement date. Otherwise the entity still gives the Ind AS 102 paragraph 44 and 45 disclosures.

  1. AInd AS 102 must be applied to all such instruments
  2. BInd AS 102 is encouraged but not required; if applied, only where fair value was publicly disclosed at the measurement dateCorrect
  3. CInd AS 102 can never be applied to them
  4. DInd AS 102 applies only if the instruments were settled in cash

Explanation

A first-time adopter is encouraged, but not required, to apply Ind AS 102 to equity instruments vested before the transition date. It may do so only if the fair value determined at the measurement date was publicly disclosed. Saying it is mandatory is wrong. For grants not accounted under Ind AS 102, disclosures per paragraphs 44 and 45 still apply.

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