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Exercise 14.8 Accounting for a grant where the number of equity instruments expected to vest varies Mitchell Ltd grants 60 share options to each of

Exercise 14.8 Accounting for a grant where the number of equity instruments expected to vest varies Mitchell Ltd grants 60 share options to each of its 200 employees. Each grant is conditional on the employee working for the company for the 3 years following the grant date. On grant date, the fair value of each share option is estimated to be $18. On the basis of a weighted average probability, the company estimates that 15% of its employees will leave during the 3-year vesting period. During year 1, 12 employees leave and the company revises its estimate of total employee departures over the full 3-year period from 15% to 18%. Required Prepare a schedule setting out the annual and cumulative remuneration expense for year 1.

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