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

Which statement about the measurement of 'fair value' for a share-based payment transaction is correct under Ind AS 102?

Ind AS 102 uses the term fair value differently from Ind AS 113 in some respects, so when applying Ind AS 102 an entity measures fair value in accordance with Ind AS 102 itself and not Ind AS 113.

  1. AThe entity measures fair value under Ind AS 102 itself, because the Standard uses 'fair value' differently from Ind AS 113Correct
  2. BThe entity must always apply the Ind AS 113 definition of fair value to the equity instruments granted
  3. CFair value is replaced by intrinsic value for every equity-settled grant
  4. DFair value is determined by the grantee's own estimate at the exercise date

Explanation

Ind AS 102 states that it uses 'fair value' in a way that differs in some respects from Ind AS 113. Therefore an entity measures fair value in accordance with Ind AS 102, not Ind AS 113. The option requiring Ind AS 113 is the exact reverse of this rule.

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