Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company granted 4 , 0 0 0 share options to each of its 6 directors on 0 1 January 2 0 2 2 on

A company granted 4,000 share options to each of its 6 directors on 01 January 2022 on

condition that that the directors would be in employment on 31 December 2024. The

option will be vested on 31 December 2024. The fair value of each option on 01 January

2022 was $20 and it is anticipated that the option will only vest when the share price

reaches $28. The share price at 31 December 2022 is $16 and is expected to rise over

the next two years, it is anticipated that only 5 directors will be employment on 31

December 2024.

Required:

Journal entries to record this transaction as at 31 December 2024 (ignore market

condition, the effect of increase in share price)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Journal entries to record share option grant as at 31 Decemb... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting And Analysis

Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn

8th Edition

978-1473766853, 1473766850

More Books

Students also viewed these Accounting questions