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P2-D2.
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annlise09
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hello sir, how do i treat a case where equity scheme is replaced by a cash scheme and when cash scheme is replaced by equity?
P2-D2
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Hi,
It is accounted for as a modification. The liability is derecognised and replaced with the fair value of the equity scheme at that date. Any difference between the liability and equity recognised is taken through profit or loss.
Thanks
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