Question
On March 31, 20x3, an entity subject to IFRS provided their senior employees with a 40,000 stock option grant. The exercise price is $7.50 and
On March 31, 20x3, an entity subject to IFRS provided their senior employees with a 40,000 stock option grant. The exercise price is $7.50 and an option valuation model values the grant at $80,000. The vesting period ends on March 31, 20x5 and the exercise period ends on December 31, 20x5.
The following are managements estimates of the % of options vesting:
December 31, 20x3 38,000 options
December 31, 20x4 36,500 options
March 31, 20x5 36,800 options actually vested
On April 1, 20x5, 20,000 options were exercised when the stock price was $26.30. On December 22, 20x5, the remaining options were exercised when the stock price was $19.40.
Required Write all journal entries for the above.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
