On 01/07/2019 Amla, Giloy & Tulsi Ltd., grants 200options to each of its 2100 employees at ₹.120 whenthe market price is ₹.400. The vesting date is 31stMarch, 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 annualforfietures rate at 10%. Fair value of a share issuedunder ESOP was ₹.186. At the end of year 2, thecompany found that 80 employees had left andreestimated the expected annual forfietures at 5%. Fairvalue of share issued under ESOP was 7.208. At theend of year 3, the company found that 192 employeeshad left. Fair value of share issued under ESOP was.160. Only 1700 employees exercised their options on31st March, 2023. The face value of equity share is *.10per share. As per Ind AS 102 calculate the expenses tobe recognised in Year 1, Year 2 and Year 3 by Fair ValueMethod and calculate the Value of options forfeited.

Explanation:Step 1: Calculate the total number of options granted. Total options granted = 200…

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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