Page 2 - 20. COMPILER QB - INDAS 102

INDAS – 102

SHARE BASED PAYMENTS

(TOTAL NO. OF QUESTIONS – 21)

INDEX

S.No. Particulars Page No.
1 RTP Questions 20.1

2 MTP Questions 20.9
3 Past Exam Questions 20.19

RTPs QUESTIONS

Q.1 (November 18)

P Ltd. granted 400 stock appreciation rights (SAR) each to 75 employees on 1st April 2017 with a fair value

Rs. 200. The terms of the award require the employee to provide service for four years in order to earn the
award. The fair value of each SAR at each reporting date is as follows:

31st March 2018 Rs. 210
31st March 2019 Rs. 220

31st March 2020 Rs. 215
31st March 2021 Rs. 218

What would be the difference if at the end of the second year of service (i.e. at 31st March 2019), P Ltd.
modifies the terms of the award to require only three years of service. Answer on the basis of relevant Ind AS.

SOLUTION

Journal entries in the books of P Ltd (without modification of service period of stock appreciation
rights) (Rs. in lakhs)

Date Particulars Debit Credit
31.03.2018 Profit and Loss account Dr. 15.75
To Liability against SARs 15.75
(Being Expense liability for stock appreciation rights
recognised)
31.03.2019 Profit and Loss account Dr. 17.25
To Liability for SARs 17.25
(Being Expense liability for stock appreciation rights
recognised)

20.1