Sharebased payments part 1

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wort apter 12 share-based Payments (Part 1) 661 S (Adapted) esquirement: Provide all the entries from 20x4 to 20x6. on vest as a , An entity grants 1,000 share options to each of its 200 onal employees on January 1, 20x1. The fair value of the entity's shares on January 1, 20x1 is P100 per share while the fai the fair value alue of the share options on this date is P25. The s for 25. The share options vest in three years' time and is exercisable four years after vesting date. The exercise price is P80 per share. On January 1, 20x1, the entity expects 5 employees to resign before the vesting date. During 20x1, 6 employees actually resigned. On December 31, 20x1, the entity revises its estimate to a total of 8 employees leaving the entity's employ before the vesting date. During 20x2, 1 employee resigned. The entity's estimate of employees leaving the entity's employ remains unchanged. During 20x3, 3 employees resigned. Requirements: Provide all the entries in 20x1, 20x2 and 20x3. 12. During 20x2, 1 employee resigned. The entity settles the share options on December 31, 20x2. Requirements: Provide the entries to record the compensation expense in 20x1 and 20x2. 2020/12/22 22:58Share-based Pay 662 Chapter 12 An enti PROBLEM 3: EXERCISES 4 . employ 1 . On January 1, 20x1, an entity grants five employees 1,00% shares share options as compensation for their commendable page of the performance. The share options are exercisable immediately at in thre an exercise price of P70, but will expire after two years' time date. The fair value per option on grant date is P60. As of year-end no employee has yet exercised its share option. On J Requirement: Provide the entry, if any, to record compensation befo expense in relation to the share option grant. resi 2. On January 1, 20x1, an entity grants each of its ten employees Or 500 share options on condition that the employees remain in nu the entity's employ until December 31, 20x2. The share options n are exercisable within three years after December 31, 20x2. The fair value per option on grant date is P60. In 20x1, 1 employee resigned. The entity expects that an additional 1 employee will resign in 20x2. In 20x2, no employee resigned. Requirements: Provide the journal entries in 20x1 and 20x2. R 3. An entity grants share options to its employees with a total fair value of P3,200,000 on January 1, 20x1. The options vest in three years' time. On December 31, 20x1, the entity expects that only 90% of the share options granted will vest. On December 31, 20x2, the entity revises its estimate of the number of share options that will vest to 96%. On December 31, 20x3, 100% of the share options vest. Requirement: Provide all the entries from 20x1 to 20x3. 2020/12/22 22:58