Remember Eleven Ltd (R11"), a listed company in Hong Kong which operates a chain of supermarkets with opening hours from 11am to 11pm, has entered into a number of share-based payments plans. R11 issued three classes of ordinary shares, namely: class A, class B and class "C". Plan A - Employees' share option for class A ordinary share R11 gives its employees an annual bonus in the form of share options with grant date on 1 January 2010. Each eligible employee received one option and it can be converted into one unit of class A ordinary share. Employees must remain in full- time employment for the next two financial years before the options can immediately exercise or lapse at 31 December 2011. At 1 January 2010, R11 has 9,000 employees (excluding store managers and directors). Each year R11 loses an average of 10% of its staff. Grant date 1 Jan 2010 Exercise price per option $16 Fair value per option at grant date $10 None of the options granted on 1 January 2010 exercised by the end of 31 December 2011. They were all lapsed at 31 December 2011. Plan B Store managers' share option for class B ordinary share Each store manager granted share options on 1 January 2010 with two conditions: (i) the manager must remain in post for the next two financial years and (ii) Rii's total revenue must increase by 10% over that two-year period. Each eligible store manager received one option and it can convert into two units of class B ordinary share. On 1 January 2010, there were 100 store managers granted this option. All expected to remain in place, but 10 of these managers left the company during the year ended 31 December 2010. A further 15 of these managers expected to leave during the year ended 31 December 2011. The options granted on 1 January 2010 had a fair value of $15. By 31 December 2010, it seemed that the company was unlikely to achieve the 10% revenue growth target for the period 1 January 2010 to 31 December 2011. By 31 December 2011, trading performance improved and 15 store managers left as expected. Sales had improved dramatically and so the conditions attached to the options have met. Therefore, 20% of the eligible store managers exercised their options at an exercise price of $16 per unit of option at 31 December 2011. The remaining 80% of the eligible store managers decided not to exercise their options and allowed them to lapse at 31 December 2011. Required: With reference to HKFRS 2 'Share-based Payments, for plan A and B individually, prepare the journal entries of R11 for the years ended 31 December 2010 and 31 December 2011 related to the share-based payments plan. Remember Eleven Ltd (R11"), a listed company in Hong Kong which operates a chain of supermarkets with opening hours from 11am to 11pm, has entered into a number of share-based payments plans. R11 issued three classes of ordinary shares, namely: class A, class B and class "C". Plan A - Employees' share option for class A ordinary share R11 gives its employees an annual bonus in the form of share options with grant date on 1 January 2010. Each eligible employee received one option and it can be converted into one unit of class A ordinary share. Employees must remain in full- time employment for the next two financial years before the options can immediately exercise or lapse at 31 December 2011. At 1 January 2010, R11 has 9,000 employees (excluding store managers and directors). Each year R11 loses an average of 10% of its staff. Grant date 1 Jan 2010 Exercise price per option $16 Fair value per option at grant date $10 None of the options granted on 1 January 2010 exercised by the end of 31 December 2011. They were all lapsed at 31 December 2011. Plan B Store managers' share option for class B ordinary share Each store manager granted share options on 1 January 2010 with two conditions: (i) the manager must remain in post for the next two financial years and (ii) Rii's total revenue must increase by 10% over that two-year period. Each eligible store manager received one option and it can convert into two units of class B ordinary share. On 1 January 2010, there were 100 store managers granted this option. All expected to remain in place, but 10 of these managers left the company during the year ended 31 December 2010. A further 15 of these managers expected to leave during the year ended 31 December 2011. The options granted on 1 January 2010 had a fair value of $15. By 31 December 2010, it seemed that the company was unlikely to achieve the 10% revenue growth target for the period 1 January 2010 to 31 December 2011. By 31 December 2011, trading performance improved and 15 store managers left as expected. Sales had improved dramatically and so the conditions attached to the options have met. Therefore, 20% of the eligible store managers exercised their options at an exercise price of $16 per unit of option at 31 December 2011. The remaining 80% of the eligible store managers decided not to exercise their options and allowed them to lapse at 31 December 2011. Required: With reference to HKFRS 2 'Share-based Payments, for plan A and B individually, prepare the journal entries of R11 for the years ended 31 December 2010 and 31 December 2011 related to the share-based payments plan