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      Question

      Under the scope of Ind AS 102, share-based payment transactions are categorized based on the method of settlement. Which of the following is NOT recognized as a distinct type of share-based payment transaction under this standard? 

      A Equity-settled share-based payment transactions. Correct Answer Incorrect Answer
      B Cash-settled share-based payment transactions. Correct Answer Incorrect Answer
      C Transactions where the entity or the supplier has a choice of settlement (Cash alternatives). Correct Answer Incorrect Answer
      D Share-based payment transactions with deferred cash consideration based on fixed interest rates. Correct Answer Incorrect Answer
      E Transactions where the entity receives goods or services as consideration for its own equity instruments. Correct Answer Incorrect Answer

      Solution

      Ind AS 102 strictly recognizes three types:  ·        Equity-settled  (shares/options given), ·        Cash-settled  (cash paid based on share price, like SARs), and  ·        Choice-based  (alternatives). A "deferred payment" based on fixed interest is a standard financial liability/debt and does not derive its value from the entity's equity instruments, hence it falls outside the purview of Ind AS 102.

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