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Sir in this question i have understood how we will account for the transaction until the vesting date.
But in similar cases where the counterparty has a choice to settle either by cash or equity and we are asked for the accounting treatment along on the settlement date how will it be?
I think if cash is chosen we wud recalculate the liability at fair value. If the amt is higher than previously recognised we wud debit equity and credit liability by the amount we calculated at the grant date as excess. Any remaining amt wud be debited to profit.
If equity is selected we wud debit the complete liability recognized for this and credit it equity.
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