X Ltd. is a first-time adopter of Ind AS. The date of transition is 1 st April, 20X1. It has given 300 stock options to its employees. Out of these,…

Ind AS 101 provides that a first-time adopter is encouraged, but not required, to apply Ind AS 102 on ‘Share-based Payment' to equity instruments that vested before the date of transition to Ind AS. However, if a first-time adopter elects to apply Ind AS 102 to such equity instruments, it may do so only if the entity has disclosed publicly the fair value of those equity instruments, determined at the measurement date, as defined in Ind AS 102. Having regard to the above, X Ltd. has the following options: For 100 options that vested before the date of transition:To apply Ind AS 102 and account for the same accordingly, provided it has disclosed publicly the fair value of those equity instruments, determined at the measurement date, as defined in Ind AS 102.Not to apply Ind AS 102. However, for all grants of equity instruments to which Ind AS 102 has not been applied, i.e., equity instruments vested but not settled before date of transition to Ind AS, X Ltd. would still need to disclose the information. For 200 options that will vest after the date of transition: X Ltd. will need to account for the same as per Ind AS 102.