Please answer asap.Both a and b Earth Ltd grants 80 share options to each of its 200 employees. Each grant is conditional on the employee working for the company for 3 years following the grant date. On grant date, the fair value of each share option is estimated to be $12. Based on a weighted average probability, the company estimates that 20% of its employees will leave during the 3-year vesting period. During year 1, 15 employees left, and the company revises its estimate of total employee departures over the full 3-year period from 20% to 22%. During year 2, seven employees left, and the company revises its estimate of total employee departures over the full 3-year period from 22% to 15%. During year 3, a further four employees left. Required: a. Prepare a schedule setting out the annual and cumulative remuneration expense for years 1-3 b. Give the journal entry in year 1.
Please answer asap.Both a and b Earth Ltd grants 80 share options to each of its 200 employees. Each grant is conditional on the employee working for the company for 3 years following the grant date. On grant date, the fair value of each share option is estimated to be $12. Based on a weighted average probability, the company estimates that 20% of its employees will leave during the 3-year vesting period. During year 1, 15 employees left, and the company revises its estimate of total employee departures over the full 3-year period from 20% to 22%. During year 2, seven employees left, and the company revises its estimate of total employee departures over the full 3-year period from 22% to 15%. During year 3, a further four employees left. Required: a. Prepare a schedule setting out the annual and cumulative remuneration expense for years 1-3 b. Give the journal entry in year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer asap.Both a and b
- Earth Ltd grants 80 share options to each of its 200 employees. Each grant is conditional on the employee working for the company for 3 years following the grant date. On grant date, the fair value of each share option is estimated to be $12. Based on a weighted average probability, the company estimates that 20% of its employees will leave during the 3-year vesting period.
During year 1, 15 employees left, and the company revises its estimate of total employee departures over the full 3-year period from 20% to 22%.
During year 2, seven employees left, and the company revises its estimate of total employee departures over the full 3-year period from 22% to 15%. During year 3, a further four employees left.
Required:
a. Prepare a schedule setting out the annual and cumulative remuneration expense for years 1-3
b. Give the
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