Samantha Corporation granted share options to its employees with a fair value of P4,500,000 on January 1, 2016. The options vest in three years and the options are exercisable starting January 1, 2019 until December 31, 2019. On December 31, 2016, it was estimated that 5% of employees will leave the entity during the vesting period. This estimate was revised to 6% during the year 2017. On December 31, 2018, employees' record indicates that 90% of the employees stayed and became entitled to the options. 1. What would be the expense charged during the year ending December 31, 2016? 2. What would be the expense charged during the year ending December 31, 2017?
Samantha Corporation granted share options to its employees with a fair value of P4,500,000 on January 1, 2016. The options vest in three years and the options are exercisable starting January 1, 2019 until December 31, 2019. On December 31, 2016, it was estimated that 5% of employees will leave the entity during the vesting period. This estimate was revised to 6% during the year 2017. On December 31, 2018, employees' record indicates that 90% of the employees stayed and became entitled to the options. 1. What would be the expense charged during the year ending December 31, 2016? 2. What would be the expense charged during the year ending December 31, 2017?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Samantha Corporation granted share options to its employees with a fair value of P4,500,000 on January 1, 2016. The options vest in three years and the options are exercisable starting January 1, 2019 until December 31, 2019. On December 31, 2016, it was estimated that 5% of employees will leave the entity during the vesting period. This estimate was revised to 6% during the year 2017. On December 31, 2018, employees' record indicates that 90% of the employees stayed and became entitled to the options.
1. What would be the expense charged during the year ending December 31, 2016?
2. What would be the expense charged during the year ending December 31, 2017?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education