A plc issues 50,000 share options to its employees on 1 January 2008 which the employees can

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A plc issues 50,000 share options to its employees on 1 January 2008 which the employees can only exercise if they remain with the company until 31 December 2010. The options have a fair value of £5 each on 1 January 2008.
It is expected that the holders of options over 8,000 shares will leave A plc before 31 December 2010. In March 2008 adverse press comments regarding A plc's environmental policies and a downturn in the stock market cause the share price to fall significantly to below the exercise price on the options. The share price is not expected to recover in the foreseeable future.
Required:
What charge should A plc recognise for share options in the financial statements for the year ended 31 December 2008?
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Financial Accounting and Reporting

ISBN: 978-1292080505

17th edition

Authors: Barry Elliott, Jamie Elliott

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