Skip to content

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

Zenith Retail Ltd grants share options to its employees. In preparing its financial statements, the finance head wonders which measurement basis applies to the 'fair value' of the options. As per Ind AS 102, how is fair value to be measured for a share-based payment?

Fair value for share-based payments is measured under Ind AS 102 itself, not Ind AS 113, because the standard uses the term fair value differently in some respects from the definition in Ind AS 113 Fair Value Measurement.

  1. AIn accordance with Ind AS 102 itself, since the term is used differently from the definition in Ind AS 113Correct
  2. BIn accordance with Ind AS 113 Fair Value Measurement in all cases
  3. CAt the intrinsic value on the grant date only
  4. DAt the market price of the shares on the reporting date

Explanation

Ind AS 102 states that it uses 'fair value' in a way that differs in some respects from Ind AS 113. Therefore the entity measures fair value as per Ind AS 102, not Ind AS 113. Applying Ind AS 113 would ignore this carve-out.

Did you get it right without looking?

One question tells you little. A timed set on Share based Payment (Ind AS 102) shows your real accuracy, how long you take and where you lose marks.

Practise Share based Payment (Ind AS 102)Free diagnostic mock

More Share based Payment (Ind AS 102) questions