A company grants 2,000 share options to each of its three directors on 1 January 2017 subject to the directors being employed on 31 December 2019. The options vest on 31 December 2019. The fair value of each option on 1 January 2017 is €10 and it is anticipated that all of the share options will vest on 31 December 2019. The options will only vest if the company's share price reaches €14 per share. The price at 31 December 2017 was €8 and it is not anticipated that it will rise over the next two years. It is anticipated that there will only be two directors employed on 31 December 2019.

Requirement How will the share options be treated in the financial statements for the year ended 31 December 2017?