Exercises:

1. On January 1, 2018, Mari Company granted 400 share options for 150 employees, conditional upon the employees remaining in the entity's employ during the vesting period.

The share options will vest over a three-year period. The fair value of each share option is P25.

By the end of 2018, 40 employees have left and based on a weightedaverage probability, a further 20 employees will leave during the vesting period.

By the end of 2019, only 16 employees have left and a further 62 employees will leave during 2020.

By the end of 2020, only 50 employees left the entity.

Required:

Compute the compensation expense for 2018, 2019 and 2020 as a result of the share options.

2. On January 1, 2018, Camil Company granted share options to each of the 100 employees.

The share options will vest at the end of 2020, provided the employees remain the entity's employ and provided the sales increase at least by an average of 8% per year.

If the sales increase by an average of at least 8%per year, each employee shall receive 100 share options.

If the sales increase by an average of at least 12% per year, each employee shall receive 200 share options.

If the sales increase by an average of at least 15% per year, each employee shall receive 300 share options.

The fair value of each share option is P30.

No employees have left during the three-year vesting period.

The sales during the vesting period increased 10% in 2018, 12% in 2019 and 20% in 2020.

Required:

Compute compensation expense for 2018, 2019 and 2020 as a result of the share options.