Page 25 - 20. COMPILER QB - INDAS 102

H Cumulative expenses (d x e x f x g) 15,62,500 19,58,333 29,75,000
I Expenses to be recognized (h-h of previous year) 3,95,833 10,16,667

Journal Entries

st
31 December,2015 Rs

Employee benefits expenses Dr. 15,62,500
To Share based payment reserve (equity) 15,62,500
(Equity settled shared based payment expected vesting

amount)
st
31 December, 2016

Employee benefits expenses Dr. 3,95,833
To Share based payment reserve (equity) 3,95,833

(Equity settled shared based payment expected vesting
amount)
st
31 December, 2017

Employee benefits expenses Dr. 10,16,667

To Share based payment reserve(equity) 10,16,667
(Equity settled shared based payment expected vesting
amount)
Share based payment reserve (equity) Dr. 29,75,000

To Share Capital 2,97,5,000
(Share capital issued)

Q18. (Nov. 19 – 8 Marks)

ABC Limited granted 500 stock appreciation rights (SAR) each to 80 employees on 1st April, 2017 with a fair

value Rs 100 each. The terms of the award require the employee to provide service for four years to earn the
award. The SARs are expected to be settled in cash and it is expected that 100% of the employees will

exercise the option. The fair value of each SAR at each reporting date is as follows:
31st March, 2018 Rs 110

31st March, 2019 Rs 120
31st March, 2020 Rs 115

31st March, 2021 Rs 130

Please present the journal entries in the books of ABC Limited over the entire life of the grants.
What would be the difference if at the end of the second-year service (i.e. at 31st March, 2019), ABC Limited
modifies the terms of the award to require only three years of total service? Please present with the revised

journal entries. Answer on the basis of relevant Ind AS.

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