Illus 12 - Market related conditions not met

Financial Reporting

If the market-related vesting conditions are not met, are employees still allowed to exercise the options granted to them? If they are still allowed to exercise, then what is the purpose of including such a market condition in the first place? If they are not allowed to exercise, how should the Share-Based Payment (SBP) reserve be presented in the Balance Sheet, and how will this reserve be reversed or closed in the future? [Video Time Stamp: 12:52] Video Details ------------- Ind AS - CA Final Ind AS 102 Share based payments #21. Illustrations 10 - 12

Seema Jain

CA Final

★ 3K+

19-Nov-25 04:18

166

Answers (1)

1. Employee will not be allowed to exercise 2. The balance in SBP reserve will be classified to other equity/retained earnings.

CA Suraj Lakhotia

Admin

24-Nov-25 16:21