On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P40 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. What amount of compensation expense will be recorded on December 31, 2021?

On January 1, 2020 share options were granted to employees where they can purchase 100,000 ordinary shares of P80 par value at P100 per share. The fair value of the share options on this date was P40 per share. The officers are entitled to the share options only after completing two years of service. The options can be exercised starting January 1, 2022 and shall expire on December 31, 2022. What amount of compensation expense will be recorded on December 31, 2021?

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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