answers: q9: C

Q10: B

how to arrive at answers?

Use the following information to answer the next 2 questions. AJ Ltd grand 500 shares to each of its 100 employees on 1 July 2012. Te grants will vest immediately when the performance targets are met, but will lapse if employees fail to achieve the targets in the 3-year vesting period. Other relevant in formation regarding the grant is as follows. The fair value of each share at grant date is $20. The Vesting conditions allow the share to vest: 30/6/2013: If earning have increased by > 10% 30/6/2014: If earning have increased by > 14% averaged across the 2year period 30/6/2015: If earning have increased by at least 12% averaged across the 3-year period O Date for the year ended 30 June 2013 is as follows: Actual increase in earnings: 8% Employee departures: 6 Anticipated employee departures during year ended 30 June 2015:10 Anticipated Increase in earnings for the year ended 30 June 2015:12% O O 0 0 0 0 Date for the year ended 30 June 2014 is as follows: Actual increase in earnings: 19% Employee departures: 8 Anticipated employee departures during year ended 30 June 2014:4 Anticipated Increase in earnings for the year ended 30 June 2014:22% 0 0 Date for the year ended 30 June 2015 is as follows: Actual increase in earnings: 14% Employee departures: 12 9. How much expense should AJ recognise in the income statement for the year ended 30 June 2013? a) $0 b) $300,000 c) $450,000 d) $500,000 e) $550,000 10. How much expense should AJ recognise in the income statement for the year ended 30 June 2014? a) $0 b) $56,667 c) $155,000 d) $450,000 e) $506,667 Use the following information to answer the next 2 questions. AJ Ltd grand 500 shares to each of its 100 employees on 1 July 2012. Te grants will vest immediately when the performance targets are met, but will lapse if employees fail to achieve the targets in the 3-year vesting period. Other relevant in formation regarding the grant is as follows. The fair value of each share at grant date is $20. The Vesting conditions allow the share to vest: 30/6/2013: If earning have increased by > 10% 30/6/2014: If earning have increased by > 14% averaged across the 2year period 30/6/2015: If earning have increased by at least 12% averaged across the 3-year period O Date for the year ended 30 June 2013 is as follows: Actual increase in earnings: 8% Employee departures: 6 Anticipated employee departures during year ended 30 June 2015:10 Anticipated Increase in earnings for the year ended 30 June 2015:12% O O 0 0 0 0 Date for the year ended 30 June 2014 is as follows: Actual increase in earnings: 19% Employee departures: 8 Anticipated employee departures during year ended 30 June 2014:4 Anticipated Increase in earnings for the year ended 30 June 2014:22% 0 0 Date for the year ended 30 June 2015 is as follows: Actual increase in earnings: 14% Employee departures: 12 9. How much expense should AJ recognise in the income statement for the year ended 30 June 2013? a) $0 b) $300,000 c) $450,000 d) $500,000 e) $550,000 10. How much expense should AJ recognise in the income statement for the year ended 30 June 2014? a) $0 b) $56,667 c) $155,000 d) $450,000 e) $506,667