Xero Ltd (Xero) grants 750 share options to each of its six directors on 1 May 2020 and the share options will vest on 30 April 2022. The fair value of each option on 1 May 2020 and 30 April 2021 are $15 and $17 respectively and their exercise price is $10 per share. At 30 April 2021, it is anticipated that 90% of the share options will vest on 30 April 2022. Required: What will be the accounting entry in the financial statements of Xero for the year ended 30 April 2021 in accordance with HKFRS 2 'Share-based Payments'? A. Increase equity $34,425; increase in expense in profit or loss $34,425 B. Increase equity $30,375; increase in expense in profit or loss $30,375 C. Increase equity $20,250; increase in expense in profit or loss $20,250 D. Increase equity $60,750; increase in expense in profit or loss $60,750
Xero Ltd (Xero) grants 750 share options to each of its six directors on 1 May 2020 and the share options will vest on 30 April 2022. The fair value of each option on 1 May 2020 and 30 April 2021 are $15 and $17 respectively and their exercise price is $10 per share. At 30 April 2021, it is anticipated that 90% of the share options will vest on 30 April 2022.
Required: What will be the accounting entry in the financial statements of Xero for the year ended 30 April 2021 in accordance with HKFRS 2 'Share-based Payments'?
A.
Increase equity $34,425; increase in expense in profit or loss $34,425
B.
Increase equity $30,375; increase in expense in profit or loss $30,375
C.
Increase equity $20,250; increase in expense in profit or loss $20,250
D.
Increase equity $60,750; increase in expense in profit or loss $60,750
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