Module No.

2 Disclosures in the Financial Statements

Module No. 2 Disclosures in the Financial Statements
Employee benefits (Ind AS 19), Earnings per Share (Ind AS 33), Lease (Ind AS 116),
Interim Financial Reporting (Ind AS 34), Share-based Payment (Ind AS 102 )

Employee benefits (Ind AS 19)

The Indian Accounting Standards (IND AS) are a set of accounting principles that Indian companies must
adhere to. IND AS 19 is a standard that deals with employee benefits. It requires companies to account for
their obligations towards employees, such as pensions, gratuity, and other post-employment benefits.

Scope of IND AS 19
The scope of IND AS 19 extends to various types of employee benefits, including short-term and long-term
benefits, termination benefits, and other post-employment benefits.

Short-term employee benefits: Short-term employee benefits are benefits that are expected to be settled
within 12 months after the end of the period in which the employee renders service. These benefits include
salaries, wages, bonuses, and short-term compensated absences, such as sick leave and vacation leave. IND
AS 19 requires companies to recognize the cost of short-term employee benefits as an expense in the period
in which the employee renders service.

Long-term employee benefits: Long-term employee benefits are benefits that are expected to be settled
more than 12 months after the end of the period in which the employee renders service. These benefits
include pensions, gratuity, and long-term compensated absences, such as sabbatical leave. IND AS 19
requires companies to recognize the cost of long-term employee benefits as an expense in the period in
which the employee renders service.

Termination benefits: Termination benefits are benefits that are paid to employees as a result of
termination of employment. These benefits include severance pay, early retirement benefits, and other
similar benefits. IND AS 19 requires companies to recognize the cost of termination benefits as an expense
when the company is demonstrably committed to either terminating the employment of current employees
or providing termination benefits as a result of an offer made to encourage voluntary redundancy.

Other post-employment benefits: Other post-employment benefits are benefits that are provided to
employees after they retire or leave the company. These benefits include post-employment medical care,
life insurance, and housing. IND AS 19 requires companies to recognize the cost of other post-employment
benefits as an expense in the period in which the employee renders service, based on the present value of
the expected future payments to employees.

Recognition and measurement of employee benefits

The recognition and measurement of employee benefits under IND AS 19 require companies to account for
their obligations towards employees accurately
Recognition
Under IND AS 19, companies are required to recognize the cost of employee benefits as an expense in their
financial statements. The cost of employee benefits includes both the present value of the expected future
payments to employees and any related costs, such as administrative costs. Companies are required to
recognize the expense in the period in which the employee renders service, and the amount of the expense
should reflect the company's best estimate of the obligation towards employees.
Measurement
The measurement of employee benefits under IND AS 19 depends on the type of employee benefit. For
defined benefit plans, companies are required to measure the present value of the defined benefit obligation
and the fair value of the plan assets. The difference between the two is recognized as a liability or asset in
the balance sheet. Any changes in the liability or asset are recognized in the statement of comprehensive
income.
For defined contribution plans, companies are required to recognize the contributions made to the pension
fund as an expense in their financial statements. The employer's obligation is limited to the amount
contributed to the pension fund.
Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 1
 Module No. 2 Disclosures in the Financial Statements
For other post-employment benefits, companies are required to measure the cost based on the present value
of the expected future payments to employees. The cost should reflect the company's best estimate of the
obligation towards employees, taking into account factors such as inflation and changes in healthcare costs.
Discount rate
The discount rate used for calculating the present value of the expected future payments to employees
should reflect the market yield on high-quality corporate bonds. The discount rate should be adjusted for
any risks associated with the obligation towards employees.

I. DEFINED BENEFIT PLANS

Defined benefit plans are a type of employee benefit plan where the employer promises to pay a specified
amount of retirement benefits to the employees upon retirement. Here are a few examples of defined benefit
plans:
1. Pension plans
Pension plans are the most common type of defined benefit plan. Under a pension plan, the employer
promises to pay a specified amount of retirement benefits to the employee upon retirement. The amount of
retirement benefits is usually based on the employee's years of service, salary, and age at retirement.
2. Gratuity
Gratuity is a defined benefit plan that provides a lump-sum payment to employees upon retirement or
termination of employment. The amount of gratuity is usually based on the employee's years of service and
salary at the time of retirement or termination.
3. Post-retirement medical benefits
Post-retirement medical benefits are a type of defined benefit plan that provides medical coverage to
employees after they retire. The employer promises to pay a specified amount of medical benefits to the
employee upon retirement. The amount of medical benefits is usually based on the employee's years of
service and salary at the time of retirement.
4. Life insurance
Life insurance is a defined benefit plan that provides a lump-sum payment to the employee's beneficiaries
upon the employee's death. The amount of life insurance benefits is usually based on the employee's years
of service and salary at the time of death.

II. DEFINED CONTRIBUTION PLANS

Defined contribution plans are a type of employee benefit plan where the employer promises to contribute
a specified amount of money to the employee's retirement account. Here are a few examples of defined
contribution plans:
1. 401(k) plans
401(k) plans are the most common type of defined contribution plan. Under a 401(k) plan, the employee
can make contributions to the plan on a pre-tax basis, and the employer may also make matching
contributions up to a certain percentage of the employee's salary. The employee's retirement benefits are
based on the contributions made to the plan and the performance of the investment portfolio.
2. Individual Retirement Accounts (IRAs)
IRAs are a type of defined contribution plan that allows individuals to save for retirement. The contributions
to an IRA can be made on a pre-tax basis or after-tax basis, depending on the type of IRA. The employer
may also contribute to the employee's IRA account.
3. Employee Stock Ownership Plans (ESOPs)
ESOPs are a type of defined contribution plan where the employer contributes stock of the company to the
employee's retirement account. The value of the retirement benefits is based on the performance of the
company's stock.
4. Profit-sharing plans
Profit-sharing plans are a type of defined contribution plan where the employer makes contributions to the
employee's retirement account based on the company's profits. The contributions may be in the form of
cash or company stock.

Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 2
 Module No. 2 Disclosures in the Financial Statements
III. OTHER POST-EMPLOYMENT BENEFITS
Apart from defined benefit and defined contribution plans, there are other post-employment benefits that
employers may provide to their employees. Here are a few examples:
1. Retiree medical and dental benefits
Retiree medical and dental benefits are a type of post-employment benefit that provides medical and dental
coverage to employees after they retire. The employer promises to pay a specified amount of medical and
dental benefits to the employee upon retirement.
2. Life insurance for retirees
Life insurance for retirees is a type of post-employment benefit that provides life insurance coverage to
employees after they retire. The employer promises to pay a specified amount of life insurance benefits to
the employee's beneficiaries upon the employee's death.
3. Long-term care insurance
Long-term care insurance is a type of post-employment benefit that provides coverage for long-term care
services, such as nursing home care or home health care. The employer promises to pay a specified amount
of long-term care benefits to the employee upon retirement.
4. Housing benefits
Housing benefits are a type of post-employment benefit that provides housing assistance to retired
employees. The employer may provide a housing allowance or subsidized housing to retired employees.

DISCLOSE REQUIREMENTS AS PER IND AS 19

IND AS 19, Employee Benefits, sets out the accounting and disclosure requirements for employee benefits.
Here are the key requirements as per IND AS 19:
 Recognition of employee benefits
Employers must recognize the cost of providing employee benefits in the accounting period in which
the employee has provided service in exchange for the benefits. The cost of providing employee benefits
should be measured at the present value of the defined benefit obligation or the fair value of the defined
contribution plan.
 Measurement of employee benefits
The measurement of employee benefits depends on the type of plan. For defined benefit plans, the
obligation should be measured based on actuarial assumptions, such as discount rate, salary growth,
and life expectancy. For defined contribution plans, the obligation should be measured based on the
amount contributed by the employer and employee.
 Disclosure requirements
Employers must disclose the following information in their financial statements:
A description of the employee benefits plans, including the nature and extent of the benefits provided
and the number of employees covered under the plans.
 The accounting policy for recognizing and measuring employee benefits.
 The present value of the defined benefit obligation and the fair value of plan assets.
 The amount of expense recognized in the income statement and the amount of contributions made
to defined contribution plans.
 The assumptions used in measuring the defined benefit obligation.
 The changes in the fair value of the plan assets during the period.
 The expected contribution to the plan for the next year.

Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 3
 Module No. 2 Disclosures in the Financial Statements
Indian Accounting Standard 33 – Earnings per Share
Earnings per share is a method used to review the performance of an entity. As the term itself denotes it
simply means determining the profit attributable to each share. Such information is required to understand
the return on investment for the shareholders and prospective investors.

What is the objective of the standard?

The objective of the standard is to provide a common parameter for reviewing the performance of the
entities and compare the same. Also, the computation can be used for reviewing the performance of the
entity between different periods.

What is the scope of the standard?

This standard requires that if an entity computes earnings per share then it must calculate and disclose the
same as per this standard. Further, this standard requires that if an entity presents both Consolidated
financial statements and Separate financial statements as per the standards then it must present the earnings
per share in both the statements separately
The standard prescribes two methods for measurement of earnings per share:
 Basic earnings per share
 Diluted earnings per share

Basic earnings per share

Basic earnings per share will be calculated by dividing the profit or loss attributable to ordinary equity
holders of the parent entity by the weighted average number of ordinary shares outstanding for the period.
This computation enables in understanding the earnings attributable to each ordinary share.
Computing earning per share
Detailed formula: Profit or loss attributable to ordinary equity holders of parent entity – After-tax
preference dividend. A weighted average of ordinary shares.
Example: Apple Ltd has a profit of Rs. 5 crores The number of ordinary shares outstanding is 10 lakhs. So
the EPS will be Rs. 50. The numerator that is the profit or loss will be profit or loss from continuing
operations attributable to the parent entity and profit or loss attributable to the parent entity adjusted for
after-tax amounts of preference dividends, differences arising on the settlement of preference shares, any
other effects on preference share classified as equity.
If any item that is to be recognised in profit or loss as per the standards is adjusted in the securities premium
account or other reserves, the amount will be deducted from profit or loss from continuing operations for
the purpose of computing basic earnings per share. The denominator is the weighted average number of
ordinary shares outstanding during the period.
The weighted average number of ordinary shares is the number of ordinary shares at the beginning of the
period, adjusted by the number of shares bought back or issued during the period multiplied by a time
weighing factor. Shares are included in the above computation from the date on which the consideration is
receivables.
The weighted average number of ordinary shares outstanding during the period and for all periods presented
shall be adjusted for events, other than the conversion of potential ordinary shares, that have changed the
number of ordinary shares outstanding without a corresponding change in resources.

Diluted earnings per share: The diluted earnings per share are computed by adjusting the profit or loss
and ordinary shares for the effects of all dilutive potential ordinary share. The numerator will be the profit
or loss as computed for basic earnings per share adjusted by the after-tax effect of the
 dividends or any other items that are related to dilutive potential ordinary shares that are deducted
in computing basic earnings per share.
 interest in the period related to dilutive potential ordinary shares that are recognized
 changes in income or expense that would be due to the conversion of the dilutive potential ordinary
share.

Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 4
 Module No. 2 Disclosures in the Financial Statements
The denominator is the weighted average number of ordinary shares as per the computation of basic
earnings per share plus the weighted average number of shares that would be issued on conversion of all
dilutive potential ordinary shares into ordinary shares.
Potential ordinary shares will be dilutive only when their conversion to ordinary shares reduces the earnings
per share or increase the loss per share from continuing operations.

What are the retrospective adjustments permitted?

Due to capitalisation, bonus issue or share split if the number of ordinary or potential ordinary shares
outstanding increases, or decreases as a result of a reverse share split, calculation of basic and diluted
earnings per share for all periods presented shall be adjusted retrospectively. If these changes occur post
the reporting period but before the financial statements are approved for the issue, the per-share calculations
for those and any prior period financial statements presented shall be based on the new number of shares.
The fact that per share calculations reflect such changes in the number of shares shall be disclosed. In
addition, basic and diluted earnings per share of all periods presented shall be adjusted for the effects of
errors and adjustments resulting from changes in accounting policies accounted for retrospectively.

How are earnings per share to be presented?

 An entity shall present basic and diluted earnings per share with equal prominence for all periods.
 An entity shall present basic and diluted earnings share even if it is negative.

What are the disclosure requirements?

An entity shall disclose the following:
 The amounts used as the numerators in calculating basic and diluted earnings per share and a
reconciliation to the profit or loss.
 the weighted average number of ordinary shares used as the denominator in calculating basic and
diluted earnings per share and a reconciliation of the denominators to each other.
 instruments (including contingently issuable shares) that could potentially dilute basic earnings per
share in the future, but were not included in the calculation of diluted earnings per share because
they are anti-dilutive for the period(s) presented.
 description of ordinary share transaction or potential ordinary share transactions

Definitions
The following terms are used in the standard with the meanings specified Anti Dilution is the increase in
the earnings per share or reduction in the loss per share that results from the assumption that convertible
instruments are converted, options or warrants exercised or that ordinary share are issued upon the
satisfaction of specified conditions.
A contingent share agreement is an agreement that is dependent on the satisfaction of conditions for the
issue of shares. Contingently issuable ordinary shares are issued on the satisfaction of specified conditions
in a contingent share agreement for consideration or otherwise. Dilution is the reduction in the earnings per
share or increase in the loss per share that results from the assumption that convertible instruments are
converted, options or warrants exercised or that ordinary share are issued upon the satisfaction of specified
conditions.
Options, warrants and their equivalent give the holder the right to purchase an ordinary share. An ordinary
share is an equity instrument that is subordinate to all equity instruments. A potential ordinary share is an
instrument that may entitle its holder to ordinary shares. Put options on ordinary shares are contracts that
give the holder the right to sell ordinary shares at a specified price for a given period.

Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 5
 Module No. 2 Disclosures in the Financial Statements
Leases (Ind AS 116):

Introduction:

 Ind AS 116 is the Indian Accounting Standard that prescribes the principles for recognition,
measurement, presentation, and disclosure of leases.
 It replaces the previous standard on leases, Ind AS 17, and introduces significant changes,
particularly for lessees.

Key Definitions:

 Lease: A contract, or part of a contract, that conveys the right to use an underlying asset for a
period of time in exchange for consideration.
 Lessee: The entity that obtains the right to use an underlying asset for a lease term.
 Lessor: The entity that provides the right to use an underlying asset for a lease term.

Lessee Accounting:

 Lessees are required to recognize a right-of-use asset and a lease liability for all leases, except for
short-term leases and leases of low-value assets (optional exemptions).
 Right-of-use asset: An asset that represents the lessee's right to use the underlying leased asset
during the lease term.
 Lease liability: A liability that represents the lessee's obligation to make lease payments.

Measurement:

 Right-of-use asset: Initially measured at cost, comprising the initial amount of the lease liability,
initial direct costs, and any lease payments made at or before the commencement date, less any
lease incentives received.
 Lease liability: Initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot
be readily determined, the lessee's incremental borrowing rate.

Subsequent Measurement:

 Right-of-use asset: Measured at cost less accumulated depreciation and accumulated impairment
losses, adjusted for any remeasurement of the lease liability.
 Lease liability: Measured using the effective interest method, with interest expense recognized in
profit or loss.

For Lessees:
1. Lease Assets and Lease Liabilities:
- Carrying amount of right-of-use assets by class of underlying asset at the end of the reporting
period: This disclosure requires the lessee to present the carrying amount of right-of-use assets, which
represent the lessee's right to use the underlying leased assets, separately for different classes of underlying
assets like buildings, equipment, vehicles, etc.
- Additions to right-of-use assets during the reporting period: The lessee should disclose the total
additions made to the right-of-use assets during the reporting period, which could arise from new leases or
modifications to existing leases.
- Carrying amount of lease liabilities at the end of the reporting period: The lessee should disclose
the total carrying amount of lease liabilities, which represent the present value of future lease payments, at
the end of the reporting period.
- Maturity analysis of lease liabilities: The lessee should provide a maturity analysis of the contractual
undiscounted cash flows for lease liabilities, showing the amounts payable within one year, between one
and five years, and after five years.
Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 6
 Module No. 2 Disclosures in the Financial Statements

2. Amounts Recognized in Profit or Loss:

- Depreciation charge for right-of-use assets by class of underlying asset: The lessee should disclose
the total depreciation charge for the reporting period, separately for different classes of underlying assets.
- Interest expense on lease liabilities: The lessee should disclose the interest expense recognized on
lease liabilities during the reporting period, which represents the unwinding of the discount on the lease
liabilities.
- Expense relating to short-term leases and low-value asset leases: If the lessee has elected to apply
the practical expedients for short-term leases (lease term of 12 months or less) or leases of low-value assets,
the total expense recognized for such leases during the reporting period should be disclosed.
- Income from subleasing right-of-use assets: If the lessee has subleased any right-of-use assets, the
income earned from such subleases during the reporting period should be disclosed.
- Total cash outflow for leases during the reporting period: The lessee should disclose the total cash
outflow for leases during the reporting period, which includes payments for principal and interest portions
of the lease liabilities, as well as payments for short-term leases and low-value asset leases.

3. Other Disclosures:
- Nature of the entity's leasing activities: The lessee should provide a general description of its leasing
activities, including the nature of the leased assets, the terms and conditions of the leases, and any
significant assumptions or judgments made in applying Ind AS 116.
- Exposure to potential future cash outflows not reflected in the measurement of lease liabilities:
The lessee should disclose information about potential future cash outflows that are not reflected in the
measurement of lease liabilities, such as variable lease payments, extension options, residual value
guarantees, etc.
- Restrictions or covenants imposed by leases: If the leases impose any significant restrictions or
covenants, such as restrictions on dividend payments, further leasing, or additional debt, these should be
disclosed.
- Sale and leaseback transactions during the reporting period: If the lessee has entered into any sale
and leaseback transactions during the reporting period, the details of such transactions, including the gain
or loss recognized, should be disclosed.

For Lessors:

1. Lease Income:
- For finance leases, a maturity analysis of the lease payments receivable: For finance leases, the
lessor should provide a maturity analysis of the undiscounted lease payments receivable, showing the
amounts receivable within one year, between one and five years, and after five years, along with the
unearned finance income.
- For operating leases, the lease income recognized during the reporting period: For operating leases,
the lessor should disclose the total lease income recognized during the reporting period, separately for
variable lease payments not dependent on an index or rate.

2. Lease Assets:
- For finance leases, the carrying amount of the net investment in the lease: For finance leases, the
lessor should disclose the carrying amount of the net investment in the lease, which represents the present
value of the lease payments receivable and the unguaranteed residual value, at the end of the reporting
period.
- For operating leases, the carrying amount of the underlying assets: For operating leases, the lessor
should disclose the carrying amount of the underlying assets subject to operating leases at the end of the
reporting period, separately for major classes of underlying assets.

3. Other Disclosures:

Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 7
 Module No. 2 Disclosures in the Financial Statements
- A general description of the entity's leasing activities: The lessor should provide a general description
of its leasing activities, including the nature of the leased assets, the terms and conditions of the leases, and
any significant assumptions or judgments made in applying Ind AS 116.
- Lease income relating to variable lease payments not included in finance leases: For finance leases,
the lessor should disclose the lease income relating to variable lease payments not included in the
measurement of the net investment in the lease.
- A maturity analysis of the undiscounted lease payments for operating leases: For operating leases,
the lessor should provide a maturity analysis of the undiscounted lease payments to be received, showing
the amounts receivable within one year, between one and five years, and after five years.

These disclosures aim to provide users of financial statements with relevant information about the entity's
leasing activities, the amounts recognized in the financial statements, and the potential future cash flows
and risks associated with leases. The level of detail and specificity of the disclosures may vary based on the
materiality and significance of the leasing activities for the entity.

Interim Financial Reporting (Ind AS 34):

Introduction:

 Ind AS 34 prescribes the minimum content of an interim financial report and the principles for
recognition and measurement in complete or condensed financial statements for an interim period.
 An interim period is a financial reporting period shorter than a full financial year.

Minimum Components of an Interim Financial Report:

1. Condensed Statement of Financial Position

2. Condensed Statement of Profit or Loss
3. Condensed Statement of Changes in Equity
4. Condensed Statement of Cash Flows
5. Selected Explanatory Notes

Disclosures in the Explanatory Notes:

1. Compliance Statement:
- This disclosure requires the entity to explicitly state that the interim financial statements have been
prepared in accordance with Ind AS 34 - Interim Financial Reporting. This statement provides assurance
to the users that the interim financial statements comply with the relevant accounting standard.
2. Accounting Policies:
- The entity should disclose the accounting policies and methods of computation followed in the
preparation of the interim financial statements. This information helps users understand the basis on
which the interim financial statements have been prepared.
- If there have been any changes in the accounting policies or methods of computation since the last
annual financial statements, these changes should be disclosed. Such changes could impact the
comparability of the interim financial information with the previous annual financial statements.
3. Seasonality or Cyclicality of Operations:
- If the entity's operations are subject to significant seasonality or cyclicality, the nature and effect of
these factors should be disclosed. This information helps users understand the potential fluctuations in the
interim results due to seasonal or cyclical patterns.
4. Unusual Items:
- Any items that are unusual because of their nature, size, or incidence, and that affect the assets,
liabilities, equity, net income, or cash flows, should be disclosed. Examples of such items could be
discontinued operations, disposals of significant assets, restructuring charges, etc. This disclosure helps
users understand the impact of non-recurring or exceptional items on the interim financial performance.
5. Changes in Estimates:
- If there have been any changes in estimates (e.g., changes in estimated useful lives of assets, changes
in estimated warranty provisions, etc.) that have a material effect on the current interim period, these

Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 8
 Module No. 2 Disclosures in the Financial Statements
changes should be disclosed. This information helps users understand the impact of changes in estimates
on the interim financial results.
6. Issuances, Repurchases, and Repayments of Debt and Equity Securities:
- The entity should disclose information about any issuances, repurchases, or repayments of debt and
equity securities during the interim period. This information is relevant for users to understand changes in
the entity's capital structure and financing activities.
7. Dividends Paid:
- The entity should disclose the amount of dividends paid (aggregate or per share) for each class of
share capital during the interim period. This information is useful for users to understand the cash
outflows related to dividend payments.
8. Segment Information:
- If the entity is required to disclose segment information in its annual financial statements, it should
also disclose segment revenue and segment result for each operating segment in the interim financial
report. This information helps users understand the performance of different business segments during the
interim period.
9. Events after the Interim Period:
- Any significant events that occurred after the interim period but before the issuance of the interim
financial report, and that have not been reflected in the interim financial statements, should be disclosed.
This information ensures that users are aware of any material events that may impact the entity's financial
position or performance.
10. Other Disclosures:
- The entity should provide any other disclosures required by Ind AS 34 or any other Ind AS that are
relevant to an understanding of the interim financial report. These disclosures may include information
about contingencies, related party transactions, fair value measurements, etc., if they are material to the
interim financial statements.

The explanatory notes should provide sufficient information to enable users to understand the significant
changes in the entity's financial position and performance during the interim period. The level of detail
and specificity of the disclosures may vary based on the materiality and significance of the items or
events.

Share-based Payment (Ind AS 102):

1. Description of Share-based Payment Arrangements:
- A description of each type of share-based payment arrangement that existed at any time during the
period, including the general terms and conditions.
- The number and weighted average exercise prices of share options for each of the following groups:
- Outstanding at the beginning of the period
- Granted during the period
- Forfeited during the period
- Exercised during the period
- Expired during the period
- Outstanding at the end of the period
- Exercisable at the end of the period
2. Measurement of Fair Value:
- For share options granted during the period, the weighted average fair value of options at the
measurement date and information on how the fair value was measured.
- For other equity instruments granted during the period (e.g., shares or share appreciation rights), the
number and weighted average fair value of those equity instruments at the measurement date, and
information on how the fair value was measured.
- For share-based payment arrangements that were modified during the period, an explanation of those
modifications.
3. Effect of Share-based Payment Transactions on Profit or Loss and Financial Position:
- The total expense recognized in profit or loss for the period arising from share-based payment
transactions, and the portion of the total expense that arises from transactions accounted for as equity-settled
share-based payment transactions.
Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 9
 Module No. 2 Disclosures in the Financial Statements
- The carrying amount at the end of the period for liabilities arising from share-based payment
transactions.
4. Additional Disclosures for Equity-Settled Share-based Payment Arrangements:
- How the fair value of the goods or services received, or the fair value of the equity instruments granted,
was determined.
- If the fair value of the goods or services received was used to measure the fair value of the equity
instruments granted, the effect of this determination on profit or loss for the period.
5. Additional Disclosures for Cash-Settled Share-based Payment Arrangements:
- Information about how the liability was measured.
- Information about how the entity determined the fair value of the goods or services received, and the
effect of this determination on profit or loss for the period.
6. Additional Disclosures for Share-based Payment Arrangements with Employees:
- Information about how the fair value of the equity instruments granted was determined, including:
- The option pricing model used and the inputs to that model
- How the model inputs were determined, including assumptions used
- The amount of expense recognized from share-based payment transactions with employees.
7. Additional Disclosures for Share-based Payment Arrangements with Other Parties:
- Information about how the fair value of the goods or services received was determined.
- The amount of expense recognized from share-based payment transactions with parties other than
employees.
8. Other Disclosures:
- Information about any other features of the share-based payment arrangement that were incorporated
into the measurement of the fair value granted (e.g., market conditions).
- Any additional disclosures necessary to enable users of the financial statements to understand the nature
and extent of share-based payment arrangements that existed during the period.
It's important to note that the disclosures should be presented separately for different types of share-based
payment arrangements, such as employee share options, employee share purchase plans, and share-based
payment transactions with parties other than employees. Additionally, the level of detail and specificity of
the disclosures may vary based on the materiality and significance of the share-based payment arrangements
for the entity.

Sandesh DSouza, Assistant Professor, Department of Commerce, St Philomena’s College(Autonomous) Mysore pg. 10