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On 1 July 2018, Wellington Ltd grants 95 share options to each of its 400 executive managers, conditional upon the employee working Wellington for the
On 1 July 2018, Wellington Ltd grants 95 share options to each of its 400 executive managers, conditional upon the employee working Wellington for the next two years. Using a generally accepted valuation model, the fair value of the share options is estimated at $12 per option at the grant date. Also, it is estimated that 15% of the executive managers will leave Wellington Ltd within the next two years, therefore forfeiting their rights to the share options. By 30 June 2019, 30 executive managers had left Wellington Ltd and it is still estimated that, overall, 15% of executives will leave over the two-year period. By 30 June 2020, another 50 executives have left before the options vest. Required Record theses events in the general journal of Wellington Ltd in accordance with the requirements of AASB 2 'Share- based Payments (2 marks)
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