Share Based Payments - Beyond ESOP | Ind AS 102 Comprehensive Analysis | CA FINAL | Concepts

Employee payments are obviously covered under Ind AS 102, which includes stock options. But apart from that, let's say you are not my employee—you are just a regular supplier. Even then, if I make a payment to you based on shares, or based on the movement of my share price, or if I am allotting or will be allotting shares to you... basically, if my payment is based on my shares or share prices. If I am making a cash payment to you, and I am paying you an amount of cash equal to what my share price is going to be, then that is also a share-based payment If I actually go ahead and allot you real shares, then that is also a share-based payment Any payment that is based on the shares of the payer—mind my words, the payer—is covered here Now, obviously, in return for this, you are going to provide me with some goods or services, right? Otherwise, why would I just allot shares to you? You will definitely give me something. But in return, if I make a share-based payment to you, it falls under Ind AS 102 So, you see, this isn't just about accounting for Employee Stock Options alone—although, frankly speaking, 99% of the time, it is about stock options." #ShareBasedPayments #IndAS102 #ESOP #EmployeeStockOptions #AccountingStandards #SharePrice #SudarshanAgrawal #IndAS #StockOptions #CashSettled #EquitySettled #ShareAllotment #SupplierPayments #SharePriceMovement #GoodsAndServices