Page 6 - 20. COMPILER QB - INDAS 102

Q.4 (May 20)

This is Same as MTP Question 10 of this book

Q.5 (May 21)

Company P is a holding company for company B. A group share-based payment is being organized in which

Parent issues its own equity shares to the employees of company B. The details are as below –
Number of Employees of Company B 100
Grant date fair value of share Rs. 87
Number of shares granted to each employee Vesting 25
conditions Immediately
Face value per share Rs. 10
Pass the journal entries in the books of company P & company B.

SOLUTION

1. Journal Entries

Books of Company P
Particulars Debit (Rs.) Credit (Rs.)
Investment in Company B Dr. 2,17,500
To Equity Share Capital A/c (2,500 share x Rs.10) 25,000
To securities Premium 1,92,500
(Being allotment of 25 shares each to 100 employed of B at fair
value of Rs. 87 per share)
Books of Company B

Particulars Debit (Rs.) Credit (Rs.)
Employee Benefit Expense A/c Dr. 2,17,500
To Capital Contribution from Parent P 2,17,500
(Being issue of shares by Parent to Employees pursuant to Group
Share-based Payment Plan)
(87 x 2,500 = 2,17,500)

Q6. (Nov. 22)

The following particulars in respect of stock options granted by a company are available:

No. of Employees covered 400 Nominal Value per share Rs. 100
No. of options per Employee 60 Exercise price per share Rs. 125
Shares offered were put in three groups. Group 1 was for 20% of shares offered with vesting period one-year.
Group II was for 40% of shares offered with vesting period two- years. Group III was for 40% of shares

offered with vesting period three-years. Fair value of option per share on grant date was Rs. 10 for Group I, Rs.
12.50 for Group II and Rs. 14 for Group III.

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