How to call function on child component on parent events

Context

In Vue 2.0 the documentation and others clearly indicate that communication from parent to child happens via props.

Question

How does a parent tell its child an event has happened via props?

Should I just watch a prop called event? That doesn't feel right, nor do alternatives ($emit/$on is for child to parent, and a hub model is for distant elements).

Example

I have a parent container and it needs to tell its child container that it's okay to engage certain actions on an API. I need to be able to trigger functions.

Give the child component a ref and use $refs to call a method on the child component directly.

html:

<div id="app">
  <child-component ref="childComponent"></child-component>
  <button @click="click">Click</button>  
</div>

javascript:

var ChildComponent = {
  template: '<div>{{value}}</div>',
  data: function () {
    return {
      value: 0
    };
  },
  methods: {
    setValue: function(value) {
        this.value = value;
    }
  }
}

new Vue({
  el: '#app',
  components: {
    'child-component': ChildComponent
  },
  methods: {
    click: function() {
        this.$refs.childComponent.setValue(2.0);
    }
  }
})

For more info, see Vue documentation on refs.

What you are describing is a change of state in the parent. You pass that to the child via a prop. As you suggested, you would watch that prop. When the child takes action, it notifies the parent via an emit, and the parent might then change the state again.

var Child = {
  template: '<div>{{counter}}</div>',
  props: ['canI'],
  data: function () {
    return {
      counter: 0
    };
  },
  watch: {
    canI: function () {
      if (this.canI) {
        ++this.counter;
        this.$emit('increment');
      }
    }
  }
}
new Vue({
  el: '#app',
  components: {
    'my-component': Child
  },
  data: {
    childState: false
  },
  methods: {
    permitChild: function () {
      this.childState = true;
    },
    lockChild: function () {
      this.childState = false;
    }
  }
})

<script src="//cdnjs.cloudflare.com/ajax/libs/vue/2.2.1/vue.js"></script>
<div id="app">
<my-component :can-I="childState" v-on:increment="lockChild"></my-component>
<button @click="permitChild">Go</button>
</div>

If you truly want to pass events to a child, you can do that by creating a bus (which is just a Vue instance) and passing it to the child as a prop.

You can use $emit and $on. Using @RoyJ code:

html:

<div id="app">
  <my-component></my-component>
  <button @click="click">Click</button>  
</div>

javascript:

var Child = {
  template: '<div>{{value}}</div>',
  data: function () {
    return {
      value: 0
    };
  },
  methods: {
    setValue: function(value) {
        this.value = value;
    }
  },
  created: function() {
    this.$parent.$on('update', this.setValue);
  }
}

new Vue({
  el: '#app',
  components: {
    'my-component': Child
  },
  methods: {
    click: function() {
        this.$emit('update', 7);
    }
  }
})

Running example: https://jsfiddle.net/rjurado/m2spy60r/1/