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2. Kaloma granted share options to its 600 employees on 1 October 2015. Each employee will receive 500 shares options provided they continue to work

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2. Kaloma granted share options to its 600 employees on 1 October 2015. Each employee will receive 500 shares options provided they continue to work for Kalomo for four years from the grant date. The fiar value of each option at th e grant date was K1.48. The actual and expected staff movement over the 4 years to 30 September 201 9 is given below: 2016 20 employees left and another 50 were expected to leave over the next three years 2017 A further 25 employees left and another 40 were expected to leave over the next two years 2018 A further 15 employees left and another 20 were expected to leave the following year 2019 No actual figures are available to date Calculate the charge to profit or loss for the year ended 30 September 2018 f or Kalomo in respect of the share options and prepare the journal entry to rec ord this. (5 Marks) 3. Tito Company in Lusaka issued K600,000 loan notes on 1 January 2018. Th e issue cots were K200 and the do not carry interest. The effective finance co st of the notes is 12% and they are redeemable at a premium of K152,389 on 31 December 2019. Which is the finance cost in respect of the loan notes for the year ended 31 Dece mber 2018

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