On 1 July 2016, Patrick Ltd granted 8000 share options to each of its top 10 senior executives with the following conditions:

The options can be exercised when the companys share price has increased to $8.40 (market condition).

The exercise price is $7.40.

The executive is required to be in continuous service during the vesting period.

The options have a four year life (vesting period).

The estimated fair value of the options at grant date was $2.40.

Patrick Ltd expects that four senior executives would leave before 30 June 2020. However, five senior executives left three during the year ended 30 June 2018 and two during the ended 30 June 2020. The share price of Patrick Ltd reached the target price of $8.40 on 10 September 2020.

On 10 September 2019, one senior executive exercises his option to purchase 8000 shares at $7.40 per share.

Required:

In accordance with AASB 2 Share-based Payment:

(a) Calculate the value of the executive remuneration at:

1. Initial measurement 1 July 2016 and the allocation per annum.
2. Subsequent measurement 30 June 2020.

(5 marks)

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(b) Provide the relevant journal entries for the financial year ended 30 June 2017 and the financial year ended 30 June 2020.

(2 marks)

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(c) Provide the relevant journal entry for the 10 September 2020 purchase of 8000 shares by one senior executive.

(3 marks)

Provide your answer here