Page 17 - 20. COMPILER QB - INDAS 102

Bombay Software Limited and agreed that the contract will be settled by issuing equity instruments of

New Age Technology Limited. New Age Technology Limited received the IT equipment on 30th July,
20X1. The share-based payment transaction was measured based on the fair value of the equity

instruments as on 1 st April, 20X1.
(iii) On 1st April, 20X1, New Age Technology Limited decided to grant the share options to its employees. The

scheme was approved by the employees on 30th June, 20X1. The issue of the share options was however
subject to the same being approved by the shareholders in a general meeting. The scheme was approved

in the general meeting held on 30th September, 20X1. The fair value of the equity instruments for
measuring the share- based payment transaction was taken on 30th September, 20X1.

Identify the grant date and measurement date in all the 3 cases of Share based payment transactions entered
into by New Age Technology Limited, supported by appropriate rationale for the determination?

SOLUTION

Ind AS 102 defines grant date and measurement dates as follows:
(a) Grant date: The date at which the entity and another party (including an employee) agree to a share-

based payment arrangement, being when the entity and the counterparty have a shared understanding of

the terms and conditions of the arrangement. At grant date the entity confers on the counterparty the
right to cash, other assets, or equity instruments of the entity, provided the specified vesting conditions,

if any, are met. If that agreement is subject to an approval process (for example, by shareholders), the
grant date is the date when that approval is obtained.

(b) Measurement date: The date at which the fair value of the equity instruments granted is measured for
the purposes of this Ind AS. For transactions with employees and others providing similar services, the

measurement date is the grant date. For transactions with parties other than employees (and those
providing similar services), the measurement date is the date the entity obtains the goods or the

counterparty renders service.
Applying the above definitions in the given scenarios following would be the conclusion based on the

assumption that the approvals have been received prospectively:

Scenario Grant date Measurement Base for grant date Base for
date measurement date
th
th
(i) 30 June, 30 20X1 June, The date on which the For employees, the measurement
20X1 scheme was approved by date is grant date
the employees
th
st
(ii) 1 April, 30 20X1 The date when the The date when the entity
20X1 July, entity and the obtains the goods from the
counterparty entered a counterparty
contract and agreed for
settlement by equity

instruments
20. 16