Question
An entity grants 100 share options to each of its 400 employees. Each grant is conditional upon the employee working for the entity for the
An entity grants 100 share options to each of its 400 employees. Each grant is conditional upon the employee working for the entity for the next three years. The entity estimates that the fair value of each share option is $15.00.
At grant date the entity estimates that 10 per cent of employees will leave during the three-year period and therefore forfeit their rights to the share options (that is, the right to the options would not have vested).
Amount of cumulative remuneration expenses at the end of year two will be:
Select one:
a. $360,000
b. None of the given options.
c. $180,000
d. $540,000
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