On January 1, Year 1, Sisig Corp. granted 60,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is P60 and the par value per share is P50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are P62 on December 31, Year 1, P66 on December 31, Year 2, P75 on December 31, Year 3 and P85 on December 31, Year 4. All share options were exercised on December 31, Year 4. What is the compensation expense for Year 4? * O 900,000 O 600,000 660,000
On January 1, Year 1, Sisig Corp. granted 60,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is P60 and the par value per share is P50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are P62 on December 31, Year 1, P66 on December 31, Year 2, P75 on December 31, Year 3 and P85 on December 31, Year 4. All share options were exercised on December 31, Year 4. What is the compensation expense for Year 4? * O 900,000 O 600,000 660,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, Year 1, Sisig Corp. granted 60,000 share options to employees. The share options
will vest at the end of three years provided the employees remain in service until then. The
option price is P60 and the par value per share is P50. At the date of grant, the entity concluded
that the fair value of the share options cannot be measured reliably. The share options have a life
of 4 years which means that the share options can be exercised within one year after vesting. The
share prices are P62 on December 31, Year 1, P66 on December 31, Year 2, P75 on December 31,
Year 3 and P85 on December 31, Year 4. All share options were exercised on December 31, Year 4.
What is the compensation expense for Year 4? *
O 900,000
O 600,000
660,000
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