On June 30, 2020, Kikyo Company granted compensatory share options for 48,000 P20 par value ordinary shares tocertain key employees. The market price of the share on that date was P36 and the option price was P30. The Black-Scholesoption pricing model measured the total compensation expense to be PS,100,000. The options are exercisable beginningJanuary 1, 2023, provided the key employees are still in entity's employ at the time the options are exercised. The optionsexpire on June 30, 2024. On January 15, 2023, when the market price of the share was P42, all 48,000 options wereexercised. What is the compensation expense for 2022?

On June 30, 2020, Kikyo Company granted compensatory share options for 48,000 P20 par value ordinary shares to certain key employees. The market price of the share on that date was P36 and the option price was P30. The Black-Scholes option pricing model measured the total compensation expense to be P8,100,000. The options are exercisable beginning January 1, 2023, provided the key employees are still in entity's employ at the time the options are exercised. The options expire on June 30, 2024. On January 15, 2023, when the market price of the share was P42, all 48,000 options were exercised. What is the compensation expense for 2022?

On June 30, 2020, Kikyo Company granted compensatory share options for 48,000 P20 par value ordinary shares to certain key employees. The market price of the share on that date was P36 and the option price was P30. The Black-Scholes option pricing model measured the total compensation expense to be P8,100,000. The options are exercisable beginning January 1, 2023, provided the key employees are still in entity's employ at the time the options are exercised. The options expire on June 30, 2024. On January 15, 2023, when the market price of the share was P42, all 48,000 options were exercised. What is the compensation expense for 2022?

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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