MCQ for CA Final FR - Chapter 5 Ind AS 102 : Share Based Payments

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 1 - Financial Reporting - Chapter 5: INDIAN ACCOUNTING STANDARD 102 : Share Based Payments :  - For Practice relevant for May/Nov 23 Examinations

 

Q:1 Entity X grants 10 shares each to its 1000 employees on the conditions as mentioned below-
-To remain in service & entity’s profit after tax (PAT) shall reach to`100 million.
-It is expected that PAT should reach to`100 million by the end of 3 years.
-Fair value at grant date is`100.
-Employees expected for vesting right by 1styear 97%, then it revises to 95% by 2nd year and finally to 93% by 3rd year.
Calculate expense in Year -3 in respect of share-based payment?

 

  1. 2,96,667
  2. 323333
  3. 310000
  4. 300000

Answer: 1

 

Q:2 An entity issued 100 shares each to its 1,000 employees subject to service condition of next 2 years. Grant date fair value of the share is`195 each. There is an expectation 97% of the employees will remain in service at the end of 1st year. However, at the end of 2nd year the expected employees to remain in service would be 91% of the total employees. Calculate expense for the year 1?

  1. 94,47,500
  2. 94,47,300
  3. 94,57,500
  4. 94,75,500

Answer: 3

 

Q:3 An entity issued 100 shares each to its 1,000 employees subject to service condition of next 2 years. Grant date fair value of the share is`195 each. There is an expectation 97% of the employees will remain in service at the end of 1st year. However, at the end of 2nd year the expected employees to remain in service would be 91% of the total employees. Calculate expense for the year 2?

 

  1. 82,87,500
  2. 82,75,500
  3. 82,78,500
  4. 82,78,300

Answer: 1

 

Q:4 An entity issued 50 shares each to its 170 employees subject to service condition of next 2 years. The settlement is to be made in cash. Grant date fair value of the share is`85 each, however, the fair value as at end of 1st year, 2nd year were`80 &`90 respectively. Calculate expense for year 2?

 

  1. 4,50,000
  2. 4,25,000
  3. 4,25,500
  4. 4,52,500

Answer: 2

 

Q:5 Reliance limited hired a maintenance company for its oil fields.The services will be settled by issuing 1,000 shares of Reliance.Period for which the service is to be provided is 1stApril, 20X1 to 1stJuly, 20X1 and fair value of the service was estimated using market value of similar contracts for`1,00,000. Nominal value per share is`10

Calculate monthly expense?

 

  1. 66,666.66
  2. 33,333.33
  3. 33,533.33
  4. 33,733.33

Answer: 2

 

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