On 1 December 20x0, the board of Progressive Corporation approved a share option plan for selected employees.

Up to 5,000,000 ordinary shares could be issued under this option plan. The terms of the share option plan are as follows:

(a) Each option entitles the holder to acquire one ordinary share of Progressive Corporation.

(b) The exercise price is set at the market price on the date of the grant.

(c) The options are exercisable two years from the grant date.

(d) The options expire five years after the grant date or at the date the grantee leaves the employment of Progressive Corporation without exercising the option, whichever is the earlier.

On 15 December 20x0, the option plan was approved by the shareholders; on 1 January 20x1, the board awarded the options to acquire 100,000 shares to each of the 100 employees. The share price at that date was $8 per share.

The board estimated the fair value of the option to be $0.80. The management of Progressive Corporation was of the opinion that the forfeiture rate could not be estimated in advance, so, it decided to assume an initial forfeiture rate of zero and to revise this rate over the vesting period based on actual forfeiture.

The number of employees who left the company during 20x1 and 20x2 was five and three, respectively. Ignore taxation.

Required

Show the journal entries for 20x1 and 20x2 to record the share option plan under IFRS 2.