(Summary) Ind AS 102
Share Based Payments
is to specify the financial reporting by an entity when it undertakes a share-based payment transaction.
Apply this Standard in accounting for all share-based payment transactions, whether or not the entity can identify specifically some or all of the goods or services received, including:
- Equity-settled share-based payment transactions,
- Cash-settled share-based payment transactions, and
- Transactions in which the entity receives or acquires goods or services and the terms of the arrangement provide either the entity or the supplier of those goods or services with a choice of whether the entity settles the transaction in cash (or other assets) or by issuing equity instruments, except as noted in para 3A–6.
- Cash settled share based payment transaction
- Employees and others
- Grant Date
- Share based payment arrangement
- Equity Settle
Cash-settled share-based payment transaction: A share-based payment transaction in which the entity acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on the price (or value) of equity instruments (including shares or share options) of the entity or another group entity.
- Recognise the goods or services received or acquired in a share-based payment transaction when it obtains the goods or as the services are received.
- Recognise a corresponding increase in equity if the goods or services were received in an equity-settled share-based payment transaction, or a liability if the goods or services were acquired in a cash-settled share based payment transaction.
- When the goods or services received or acquired in a share-based payment transaction do not qualify for recognition as assets, they shall be recognised as expenses.
Equity-settled share-based payment transactions:
- Measure the goods or services received, and the corresponding increase in equity, directly, at the FV of the goods or services received, unless that FV cannot be estimated reliably.
- If the entity cannot estimate reliably the FV of the goods or services received, measure their value, and the corresponding increase in equity, indirectly, by reference to the FV of the equity instruments granted.
Cash-settled share-based payment transaction:
Measure the goods or services acquired and the liability incurred at the FV of the liability.
Share-based payment transaction with cash alternatives:
For share-based payment transactions in which the terms of the arrangement provide either the entity or the counterparty with the choice of whether the entity settles the transaction in cash (or other assets) or by issuing equity instruments, the entity shall account for that transaction, or the components of that transaction, as a cash-settled share-based payment transaction if, and to the extent that, the entity has incurred a liability to settle in cash or other assets, or as an equity-settled share-based payment transaction if, and to the extent that, no such liability has been incurred.
The determination of whether a change in terms and conditions has an effect on the amount recognised depends on whether the fair value of the new instruments is greater than the fair value of the original instruments (both determined at the modification date).
Disclose information that enables users of the FS to understand the nature and extent of share-based payment arrangements that existed during the period.