Page 16 - 20. COMPILER QB - INDAS 102

To Share based payment liability 1,62,000
(Fair value of the SAR recognized)

Share based payment liability Dr. 60,000
To Cash (Settlement of SAR) 60,000
31 December 20X8

Share based payment liability Dr. 30,000
To Employee benefits expenses (Fair 30,000
value of the SAR recognized)

Share based payment liability Dr. 3,60,000
To Cash 3,60,000
(Settlement of SAR)

Q12. (October 20 – 8 Marks)

Lucky Limited grants 180 share options to each of its 690 employees. Each grant contains conditions on the

employees working for Lucky Ltd. over the next 4 years. Lucky Ltd. has estimated that the fair value of the
option is Rs 15. Lucky Ltd. also estimated that 30% of employees will leave during the four-year period and

hence forfeit their rights to the share option. If the above expectations are correct, what amount of expenses
to be recognised during the vesting period?

SOLUTION

Expense to be recognized during 4 years’ vesting period:
Year Calculation Expenses for the Cumulative

period expenses
Rs Rs
1 690 employees x 180 options x 70% x Rs 15 x ¼ 3,26,025 3,26,025

2 [690 employees x 180 options x 70% x Rs 15 x 3,26,025 6,52,050
2/4 years] – Rs 3,26,025
3 [690 employees x 180 options x 70% x Rs 15 x 3,26,025 9,78,075

3/4 years] – Rs 6,52,050
4 [690 employees x 180 options x 70% x Rs 15 x 3,26,025 13,04,100
4/4 years] – Rs 9,78,075

Total amount of the expenses to be recognized during the 4 years' vesting period will be 13,04,100.

Q13. (April 21 – 8 Marks)

New Age Technology Limited has entered into following Share Based payment transactions:

(i) On 1st April, 20X1, New Age Technology Limited decided to grant share options to its employees. The
scheme was approved by the employees on 30th June, 20X1. New Age Technology Limited determined
the fair value of the share options to be the value of the equity shares on 1st April, 20X1.

(ii) On 1st April, 20X1, New Age Technology Limited entered into a contract to purchase IT equipment from
20. 15