Problem 21. On January 1, 2011, Globe Inc. granted 300 share options each to 100 employees, conditional upon the employee's remaining in the entity's employ during the vesting period. The share options vest at the end of the three-year period. On grant date, each share option has a fair value of P15. On January 1, 2012, Globe Inc. waived the condition for the release of the share options which resulted to the acceleration of the vesting period. Required: Based on your audit, determine the following: 1. Compensation expense for the year ended December 31, 2012 2. Assuming there is no waiver of the condition but instead Globe settled the stock option on January 1, 2013 by paying P350,000, what is the gain/(loss) on settlement of share option?
Problem 21. On January 1, 2011, Globe Inc. granted 300 share options each to 100 employees, conditional upon the employee's remaining in the entity's employ during the vesting period. The share options vest at the end of the three-year period. On grant date, each share option has a fair value of P15. On January 1, 2012, Globe Inc. waived the condition for the release of the share options which resulted to the acceleration of the vesting period. Required: Based on your audit, determine the following: 1. Compensation expense for the year ended December 31, 2012 2. Assuming there is no waiver of the condition but instead Globe settled the stock option on January 1, 2013 by paying P350,000, what is the gain/(loss) on settlement of share option?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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