share based compensation 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 shareoptions vest at the end of the three-year period. On grant date, each share option has a fair value ofP15. On January 1, 2012, Globe Inc. waived the condition for the release of the share options whichresulted 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 optionon January 1, 2013 by paying P350,000, what is the gain/(loss) on settlement of share option?Problem 22. On January 1, 2015, WAY Inc. granted 100 share options to its 500 employees. Theshare options are subject to the condition that the employees must remain to the company for aperiod of 3 years. The share option is not traded at the stock market. Each share option entitles theholder to acquire one ordinary share with P2 par value for P5 per share. The ordinary shares of WAYInc. which are listed at the stock market are trading at the following prices: 12/31/2015 - P8;12/31/2016 – P7; 12/31/2017 - P10.As of December 31, 2015, 80 employees have left and the company estimated based onweighted average probability that 20 employees will leave during the vesting period. As of December31, 2016, 40 employees have left and the company estimated based on weighted average probabilitythat 30 employees will leave during the vesting period. As of December 31, 2017, 130 employeeshave left. On January 1, 2018, all share options are exercised.Required: Determine the following:1. Share option as of December 31, 20152. Compensation expense for the year ended December 31, 20163. Compensation expense for the year ended December 31, 20174. Net increase in share premium for the year ended December 31, 2018

Since you have asked multiple questions, we will solve the first question for you . If you want any…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How do defined-benefit plans differ from defined contribution plans?
Define special dividend
What is a lump-sum purchase, and how is it accounted for?
Which of the following does not increase the Projected Benefit Obligation? Actuarial loss on benefit obligation Current service costs Interest expense on benefit obligation Settlement of benefit obligation
Explain the types of compensation that are defined as wages.
ordinary share capital
How are losses allocated to S Corporation owners ?
Define each of the following terms:a. Lessee; lessor
What is the Ownership rights held by common shareholders?
List the factors affecting Employee compensation plan ?