Share Based Payment are made to employees without vesting condition under Ind AS 102

S.B.P are made to employees

Without vesting condition

In such case, entity should recognise employee benefit expenses immediately on the grant date at the fair value of shares on grant date because the services rendered by employees can’t be determined in most cases.

Journal entries

Employee Benefit expenses Dr. xxxx
             To Equity share Capital xxxx
             To Security Premium Reserve xxxx
        (Being Shares issued)

And after at the end of the year, employee benefit expenses to be written off in P&L.


There are some restrictions attached with such share-based payment like not selling shares for till certain period say 3 years, it effects the fair value of equity shares, so in such case fair value to be determined with taken consideration of such restrictions.

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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