On January 1, 2019, an entity granted 10,000 share options to employees. The share options vest at December 31, 2020 provided the employees remain in service until then. The fair value of the share option cannot be estimated reliably. The par value per ordinary share is P100. The option price is P125 and the market value of the ordinary share is also P125 at the date of grant. All share options vested on December 31, 2020 and no employees left the entity. The share options can be exercised starting January 1, 2021 and expire two years after. All share options are exercised on December 31, 2021. The share market prices are P150 on December 31, 2019, P180 on December 31, 2020 and P200 on December 31, 2021. Required: A. Prepare journal entries from 2019 to 2021
On January 1, 2019, an entity granted 10,000 share options to employees. The share options
vest at December 31, 2020 provided the employees remain in service until then.
The fair value of the share option cannot be estimated reliably. The par value per ordinary
share is P100.
The option price is P125 and the market value of the ordinary share is also P125 at the date
of grant. All share options vested on December 31, 2020 and no employees left the entity.
The share options can be exercised starting January 1, 2021 and expire two years after. All
share options are exercised on December 31, 2021. The share market prices are P150 on
December 31, 2019, P180 on December 31, 2020 and P200 on December 31, 2021.
Required:
A. Prepare
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