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      Question

      Which of the following is true about stock options

      granted to employees (share-based payments) under Ind AS 102?
      A They are recognised as an expense over vesting period with corresponding increase in equity or liability depending on settlement Correct Answer Incorrect Answer
      B Always treated as capital transaction with no P&L effect Correct Answer Incorrect Answer
      C Always expensed fully at grant date regardless of vesting Correct Answer Incorrect Answer
      D Never recognised in financial statements Correct Answer Incorrect Answer

      Solution

      Ind AS 102 requires that share-based payments are measured at fair value and recognized as an expense over the vesting period, with a corresponding increase in equity (for equity-settled) or a liability (for cash-settled).

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