A company grants 2,000 share options to each of its three directors on 1 January 2016, subject to the directors being employed on 31 December 2018. The options vest on 31 December 2018. The fair value of each option on 1 January 2016 is $10, and it is anticipated that on 1 January 2016 all of the share options will vest on 31 December 2018. The options will only vest if the company's share price reaches $14 per share. The share price at 31 December 2016 is $8 and it is not anticipated that it will rise over the next two years. It is anticipated that on 31 December 2016 only two directors will be employed on 31 December 2018, RequiredHow will the share options be treated in the financial statements for the year ended 31 December 2016