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The Infamous Lucky Ltd sum

Sir, shouldn't the "Compensation expense of the year" be divided by 3, instead of 2, Because its being vested over period of 3 years?

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Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

26-Nov-20 19:18

11

Answers (4)

Best Answer

As a matter of prudence, worst case scenario for company is assumed. So at the end of first year, it is assumed that the vesting condition would be satisfied by the end of second year.


Suraj Lakhotia

Suraj Lakhotia

Admin

27-Nov-20 15:21

As a matter of prudence, worst case scenario for company is assumed. So at the end of first year, it is assumed that the vesting condition would be satisfied by the end of second year.

In all other sums excet this one, ICAI have assumed over 3 years and divided by 3. So it will be okay if I apply the same is question is silent about it?


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

27-Nov-20 16:48

In all other sums excet this one, ICAI have assumed over 3 years and divided by 3. So it will be okay if I apply the same is question is silent about it?

No. Here its not a three year vesting but a conditional vesting. Which could have happened in year 1 or year 2 or year 3.


Suraj Lakhotia

Suraj Lakhotia

Admin

27-Nov-20 17:43

No. Here its not a three year vesting but a conditional vesting. Which could have happened in year 1 or year 2 or year 3.

Oh ok. Conditional vesting. I will keep that in mind :


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

27-Nov-20 18:03

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