Problem 4: (Share-based compensation: Share options) On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the
Problem 4: (Share-based compensation: Share options)
On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the
employees remaining in the entity’s employ during the vesting period. The share options will vest over a
three-year period. The fair value of each share option is ₱50. By the end 0f 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity.
All share options are exercised at December 31, 2022.
G. Fill in the amounts per individual account based on the exercise of the options on December 31, 2022
14. Debit to Cash?
15. Debit to Share options outstanding?
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