As per ICAI Guidance Note on ESOP, Share Options Outstanding Account should be shown in the Balance Sheet of a company as follows:

CS Executive · Corporate and Management Accounting · PYQS · June 2022
As per ICAI Guidance Note on ESOP, Share Options Outstanding Account should be shown in the Balance Sheet of a company as follows:
(A) Separate line item under Reserves and Surplus
(B) Separate line item under Share Capital
(C) Separate line item under Other Reserves
(D) Separate line item under Current Liabilities

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A), (B). Official source note: As per ICAI Guidance Note on ESOP, Employee Stock Option Outstanding will appear in the balance sheet under a separate heading between 'Share Capital' and 'Reserve and Surplus'. Option A & B both are correct.

Topics: Corporate Accounting

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