Capello Ltd grants 300 share options to each of its 40 employees. Each grant is conditional on the employee working for the company for the next four years. The fair value of each option on grant date is estimated to be $4 on grant date and $6 on vesting date. Assuming that the entity estimates that 4 employees will leave during the four-year period, the amount to be recognized as an expense by Capello Ltd in year 3 is:
Capello Ltd grants 300 share options to each of its 40 employees. Each grant is conditional on the employee working for the company for the next four years. The fair value of each option on grant date is estimated to be $4 on grant date and $6 on vesting date. Assuming that the entity estimates that 4 employees will leave during the four-year period, the amount to be recognized as an expense by Capello Ltd in year 3 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Capello Ltd grants 300 share options to each of its 40 employees. Each grant is conditional on the employee working for the company for the next four years. The fair value of each option on grant date is estimated to be $4 on grant date and $6 on vesting date. Assuming that the entity estimates that 4 employees will leave during the four-year period, the amount to be recognized as an expense by Capello Ltd in year 3 is:
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