On 01/07/2019 Amla, Giloy & Tulsi Ltd., grants 200 options to each of its 2100 employees at *.120 when the market price is *.400.The vesting date is 31st March, 2022 and the exercise date is 31st March, 2023. At the end of the year 1, the company founds that 100employees had left and estimated the expected annual forfietures rate at 10%. Fair value of a share issued under ESOP was .186. At theend of year 2, the company found that 80 employees had left and reestimated the expected annual forfictures at 5%. Fair value of shareIssued under ESOP was 2.208. At the end of year 3, the company found that 192 employees had left. Fair value of share issued under ESOPwas 2.160. Only 1700 employees exercised their options on 31st March, 2023. The face value of equity share is 2.10 per share. As perInd AS 102 calculate the expenses to be recognised in Year 1, Year 2 and Year 3 by Fair Value Method and calculate the Value of optionsforfeited.

To calculate the expenses to be recognized in Year 1, Year 2, and Year 3 by the Fair Value Method…

Answered: On 01/07/2019 Amla, Giloy & Tulsi Ltd.,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On 1 October 2021, Shildon plc granted 500 £1 share appreciation rights (SARS) to each of its 2,000 employees. Employees will be eligible to exercise their rights on 30 September 2024, if they remain employed by Shildon plc. On 30 September 2022, Shildon plc estimated that 10% of employees would leave within the vesting period and forfeit their rights to the SARS. On 30 September 2023, the estimate of total leavers was revised to 25 %. On 1 October 2021, the fair value of each £1 SAR was £5. This fair value of each £1 SAR was £6 on 30 September 2022 and £8 on 30 September 2023. The SAR liability was correctly calculated in accordance with IFRS 2 Share - based payments on 30 September 2022. Required: Advise the directors of Shildon plc on the accounting treatment of the SARS in the year ended 30 September 2023.
8. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. The plan had a two-year service period. Compensation expense in year 2 would be?
On January 1, 2020 Sams Company granted Jim Norman, an employee, an option to buy 300 shares of Sams stock for $40 per share. The option is exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $4,800. The market value for each share of stock is $55 a share. The service period for the stock compensation is for two years beginning January 1, 2020. Record the journal entries for 2020 and 2021.
On January 1, 2020, AllClear Company issues 2,000 shares of restricted stock to its CEO, Jason Skyline. AllClear’s stock has a fair value of $30 per share on January 1, 2020. Additional information is as follows. The service period related to the restricted stock is five years. Vesting occurs if Skyline stays with the company for a five-year period. The par value of the stock is $10 per share. Prepare journal entries relating to the restricted stock in 2020. Assume that Jason Skyline leaves the company on April 1, 2021 (before any expense has been recorded during 2021). Prepare journal entry relating to the restricted stock in 2021, if necessary.
On January 1, 2022, Rosewood Corp. purchased a put option on shares of ICM stock. Terms of the contract were as follows: Number of shares: 100 Strike price: $200 per share Expiration date: May 31, 2022 Total cost of the option contract: $80 Seller of the option contract: First Investment Bank On January 1, 2022, ICM stock was trading at $200 per share. The following additional information is known: On March 31, 2022, the price of ICM stock was $220 per share. A market appraisal indicated that the time value of the option contract was $60. On May 10, 2022, the price of ICM stock was $185 per share. A market appraisal indicated that the time value of the option contract was $50. On this date, Rosewood settled the option contract. What is the dollar value of put option that Rosewood Corp. would have included in its March 2022 quarterly financial statements?
SMR Corp. granted 226,000 stock options to employees on 12/31/2019 as compensation over the next 3 years. The options had a strike price of $74 per share and market prices of $89 on 12/31/2020 and $85 on 12/31/2021. If they originally estimated the original fair value to be $2,260,000, how much compensation expense should they recognize on 12/31/2021, assuming that the options can only be used to purchase stock? (NIE 14) $904,000 $2,486,000 O $753,333 ০ $3,390,000
On January 1, 2020, Green Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 90% of the employees remained in the company. What is the amount charged to compensation expense in year 2020?
DaBaby Company issues 4,000 shares of restricted stock to its CFO, Stallion Megan, on January 1, 2020. The stock has a fair value of $120,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Fierce stays with th company for 5 years. The par value of the stock is $5. At December 31, 2021, the fai value of the stock is $135,000. On January 3, 2023, Megan leaves the company Prepare the journal entry to account for this forfeiture. O Common Stock 20,000 Paid-in-Capital in excess of par Common Stock 100,00O Unearned Compensation 48,000 Compensation Expense 72,000 O Common Stock 120,000 Unearned Compensation 72,000 Compensation Expense 48,000 O Unearned Compensation 120,000 Common Stock 20,000 Paid-in-Capital in excess of par - Common Stock 100,000 O Common Stock 20,000 Paid-in-Capital in excess of par Common Stock 100,000 Unearned Compensation 72,000 Compensation Expense 48,000 L ASA
Isadore Bell Company granted 8 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $3 per share on January 1, 2021, the grant date. When calculating diluted EPS at December 31, 2022, what will be the net increase in the denominator of the EPS fraction if the market price of the common shares averaged $4 per share during 2022?
23. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. The plan had a two-year service period. Compensation expense in year 3?
On January 1, 2020 Sams Company granted Jim Norman, an employee, an option to buy 300 shares of Sams stock for $40 per share. The option is exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $4,800. The market value for each share of stock is $55 a share. The service period for the stock compensation is for two years beginning January 1, 2020. Record the journal entries for 2020 and 2021.
On 1 January 2017, Gyamera Limited granted 100 share options to each of its 300 employees, with each of the share options being conditional upon the employee working for Gyamera Limited until 31 December 2019. At the grant date, the FV of each share option was GHC15.00. During 2017, 15 employees left Gyamera Limited and the company’s directors estimated that a total of 20% of the 300 employees would leave during the three-year period 2017-2019.At the beginning of 2018, Gyamera Limited modified the terms and conditions of the share option by reducing the exercise price. This had the effect of increasing the FV of a share option at the beginning of 2018 by GHC9.00.During 2018, a further six employees left the company and the directors revised their estimate of the total number of the 300 employees to 15% that would leave the company during the three-year period 2017-2019.During 2019, a further five employees left the company.Required;Calculate the remuneration expense that should be…

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