Western Wear U.S. GAAP

On January 1, 2022, Western Wear, Inc., a U.S. GAAP reporter, granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2022, 30% will vest on December 31, 2023, and the remaining 40% will vest on December 31, 2024. The fair value of the options was $15.34 per share using a weighted-average expected life. The fair value of the 30,000 shares that vest in 2022 is $14.67 per share. The fair value of the 30,000 shares that vest in 2023 is $15.38 per share and the fair value of the remaining options is $16.30 per share in 2024. Western Wear records stock-based compensation by adjusting for estimated forfeitures. However, Western Wear does not expect any forfeitures for these options.

Prepare a memo to the file addressing Western Wears compensation expense for 2022 through 2024. Use the Codification for support.

Western Wear IFRS

On January 1, 2022, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2022, 30% will vest on December 31, 2023, and the remaining 40% will vest on December 31, 2024. The fair value of the options was $15.34 per share using a weighted-average expected life. The fair value of the 30,000 shares that vest in 2022 is $14.67 per share. The fair value of the 30,000 shares that vest in 2023 is $15.38 per share and the fair value of the remaining options is $16.30 per share in 2024. Western does not expect any forfeitures. Western Wear is an IFRS reporter.

Prepare a memo to the file addressing Western Wears compensation expense for 2022 through 2024. Use the international authoritative literature for support.

NOTE: We do not need an entire memo to the file for this part of the case, please just note any differences in the compensation expense under IFRS (be sure to cite where you found the information in the IFRS literature). Please provide any necessary calculations made.