Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have been asked to review a number of accounting-related transactions that have arisen in Hayes Co, a medium sized firm that manufactures plastic storage

You have been asked to review a number of accounting-related transactions that have arisen in Hayes Co, a medium sized firm that manufactures plastic storage equipment for industrial and commercial use. The company prepares its accounts in accordance with International Financial Reporting Standards (IFRS) and has a financial year end of 31 January every year.

On 1 February 2020, Hayes granted 100 share options to their 10 directors. The following information is available:

The fair value of share options:

1 February 2020: 1 per option

31 January 2021: 1.50 per option

31 January 2022: 2 per option

The share options will vest on 31 January 2022 to any director that remains with Hayes until that date. By 31 January 2021, one director had left the company, and another two were expected to leave over the next year. By 31 January 2022, only one more director had left the company.

Required:

Explain and justify how Hayes would account for this transaction, preparing calculations where appropriate and showing the presentation requirements as at 31 January 2022.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Essentials Quick Access To The Important Facts And Concepts Complete Overview Simply Presented Easy To Grasp

Authors: Frank C. Giove, Accounting Study Guides

1st Edition

0878918795, 978-0878918799

More Books

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago