On January 1,2019, an entity granted 100 share options each to 500 employees, conditional upon employees’ remaining in the entity’s employ during the vesting period. The share option vest at the end of three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31,2021, only 20 employees actually left and all of the share options are exercised on such date. 1. ) What is the compensation expense for 2019? a. 500,000 b. 250,000 c. 750,000 d. 450,000 2. What sis the compensation expense for 2020? a. 880,000 b. 380,000 c. 440,000 d. 500,000 3. What is the compensation expense for 2021? a. 600,000 b. 880,000 c. 380,000 d. 470,000 4. What amount was credited to share premium when the options were exercised on December 31,2021? a. 2,250,000 b. 2,350,000 c. 900,000 d. 0
On January 1,2019, an entity granted 100 share options each to 500 employees, conditional upon employees’ remaining in the entity’s employ during the vesting period. The share option vest at the end of three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31,2021, only 20 employees actually left and all of the share options are exercised on such date.
1. ) What is the compensation expense for 2019?
a. 500,000 b. 250,000 c. 750,000 d. 450,000
2. What sis the compensation expense for 2020?
a. 880,000
b. 380,000
c. 440,000
d. 500,000
3. What is the compensation expense for 2021?
a. 600,000
b. 880,000
c. 380,000
d. 470,000
4. What amount was credited to share premium when the options were exercised on December 31,2021?
a. 2,250,000
b. 2,350,000
c. 900,000
d. 0
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