TMI BlogCompanies (Indian Accounting Standards) (Amendment) Rules, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... of equity instruments might be conditional upon satisfying specified vesting conditions. For example, a grant of shares or share options to an employee is typically conditional on the employee remaining in the entity s employment for a specified period of time. There might be performance conditions that must be satisfied, such as the entity achieving a specified growth in profit or a specified increase in the entity s share price. Vesting conditions, other than market conditions, shall not be taken into account when estimating the fair value of the shares or share options at the measurement date, Instead, vesting conditions, other than market conditions, shall be taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognised for goods or services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Hence, on a cumulative basis, no amount is recognised for goods or services received if the equity instruments granted do not vest because of failure to satisfy a vesting condition, other than a market conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat changes its classification from cash-settled to equity-settled is given in paragraphs B44A B44C in Appendix B. (v) after paragraph 33 , the following paragraphs and headings shall be inserted, namely:- Treatment of vesting and non-vesting conditions 33A A cash-settled share-based payment transaction might be conditional upon satisfying specified vesting conditions. There might be performance conditions that must be satisfied, such as the entity achieving a specified growth in profit or a specified increase in the entity s share price. Vesting conditions, other than market conditions, shall not be taken into account when estimating the fair value of the cash-settled sharebased payment at the measurement date. Instead, vesting conditions, other than market conditions, shall be taken into account by adjusting the number of awards included in the measurement of the liability arising from the transaction. 33B To apply the requirements in paragraph 33A, the entity shall recognise an amount for the goods or services received during the vesting period. That amount shall be based on the best available estimate of the number of awards that are expected to vest. The e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F does not apply to: (a) a share-based payment arrangement with a net settlement feature for which there is no obligation on the entity under tax laws or regulations to withhold an amount for an employee s tax obligation associated with that share-based payment; or (b) any equity instruments that the entity withholds in excess of the employee s tax obligation associated with the share-based payment (i.e. the entity withheld an amount of shares that exceeds the monetary value of the employee s tax obligation). Such excess shares withheld shall be accounted for as a cashsettled share-based payment when this amount is paid in cash (or other assets) to the employee. (vi) for paragraph 52 , the following paragraph shall be substituted, namely:- 52 If the information required to be disclosed by this Standard does not satisfy the principles in paragraphs 44, 46 and 50, the entity shall disclose such additional information as is necessary to satisfy them. For example, if an entity has classified any share-based payment transactions as equity-settled in accordance with paragraph 33F, the entity shall disclose an estimate of the amount that it expects to transfer to the tax a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sification and Measurement of Share-based Payment Transactions under Ind AS 102. Effective date 60-63C [Refer Appendix 1] 63D Amendments to Classification and Measurement of Share-based Payment Transactions under Ind AS 102 amended paragraphs 19, 30 31, 33 and 52 and added paragraphs 33A 33H, 59A 59B, 63D and B44A B44C and their related headings. An entity shall apply those amendments for annual periods beginning on or after 1 April, 2017. (viii) In Appendix B, after paragraph B44 , the following paragraphs and heading shall be inserted, namely:- Accounting for a modification of a share-based payment transaction that changes its classification from cash-settled to equity-settled B44A If the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Specifically: (a) The equity-settled share-based payment transaction is measured by reference to the fair value of the equity instruments granted at the modification date. The equity-settled share-based payment transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... changes in foreign exchange rates; (d) changes in fair values; and (e) other changes. 44C Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the statement of cash flows as cash flows from financing activities. In addition, the disclosure requirement in paragraph 44A also applies to changes in financial assets (for example, assets that hedge liabilities arising from financing activities) if cash flows from those financial assets were, or future cash flows will be, included in cash flows from financing activities. 44D One way to fulfil the disclosure requirement in paragraph 44A is by providing a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, including the changes identified in paragraph 44B. Where an entity discloses such a reconciliation, it shall provide sufficient information to enable users of the financial statements to link items included in the reconciliation to the balance sheet and the statement of cash flows. 44E If an entity provides the disclosure required by paragraph 44A in combination with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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