BCG Limited granted 5,000 share options to each of its four directors on | January 2017, subject to the directors still being employed by the company on 31 December 2019 and BCG Limited’s share price exceeding €20 per share.

On I January 2017, the fair value of each option was €15 and it was expected that the four directors would still be employed by BCG Limited on 31 December 2019.

On 31 December 2017, the share price of BCG Limited was €14.50 and it was not expected to change significantly over the next two years. It was anticipated that only three of the directors would still be employed by BCG Limited on 31 December 2019.

Requirement Show and explain how to account for the share options in the financial statements of BCG Limited for the year ended 31 December 2017.