On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon the employees’ remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2021, 30 employees have left and it is expected that on the basis of weighted average probability, a further 30 employees will leave before the of the three-year period. On December 31, 2022, only 20 employees actually left and all of the share options are exercised on such date. How much is the compensation expense that should be recognized for 2022? A . 500,000 B. 880,000 C. 380,000 D. 470,000

On January 1, 2020, Jade Company granted 100 share options each to 500 employees, conditional upon the employees’ remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2021, 30 employees have left and it is expected that on the basis of weighted average probability, a further 30 employees will leave before the of the three-year period. On December 31, 2022, only 20 employees actually left and all of the share options are exercised on such date. How much is the compensation expense that should be recognized for 2022? A . 500,000 B. 880,000 C. 380,000 D. 470,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...

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On January 1,2019, an entity granted 100 share options each to 500 employees, conditional upon employees’ remaining in the entity’s employ during the vesting period. The share option vest at the end of three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31,2021, only 20 employees actually left and all of the share options are exercised on such date. 1. ) What is the compensation expense for 2019? a. 500,000 b. 250,000 c. 750,000 d. 450,000 2. What sis the compensation expense for 2020? a. 880,000 b. 380,000 c. 440,000 d. 500,000 3. What is the compensation expense for 2021? a. 600,000 b. 880,000 c. 380,000 d. 470,000 4. What amount was credited to share premium when the…
.On January 1, 2019, Kamagong Company granted 100 share options each to 500 employees, conditional upon the employee’s remaining in the entity’s employ during the vesting period. The share options vest at the end of a three-year period. On grant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. On December 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, a further 30 employees will leave before the end of the three-year period. On December 31, 2021, only 20 employees actually left and all of the share options are exercised on such date. QUESTIONS What amount should be reported as compensation expense for 2019? what amount should be reported as compensation expense for 2020? What amount should be reported as compensation expense for 2021?
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On January 1, 2020, ABC Company granted share options to each of the 300 employees working in the Accounting department. The options price is P90 and the par value is P70 per share.The share options vest at the end of a three-year period provided that the employees remain in the entity’s employ and provided the volume of sales will increase by 10% per year. The fair value of each share option on grant date is P35. The share will vest as follows: If the sales increase by 10%, each employee will receive 200 share options; If the sales increase by 15%, each employee will receive 300 share options. · On December 31, 2020, the sales increased by 10%, and no employees have left the entity· On December 31, 2021, sales increased by 15% and no employees have left.On December 31, 2022, the sales increased by 15% and 50 employees left the entityWhat is the compensation expense for 2022?
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On July 1, 2020, Paulina, Inc. granted share options to executives, which options allow them to purchase 20,000 ordinary shares at 25 per share. The options will vest provided that the executives will be employed in the company for the next two years. The options can be exercised for a one-year period starting July 1, 2022. By end of 2020, the market price of Paulina’s ordinary share as P33 per share. The fair value of the options cannot be reliably determined. All executives are expected to remain in the company for the whole vesting period. How much should Paulina charge to compensation expense for the year ended December 31, 2020? a. P0 b. P40,000 c. P80,000 d. P160,000
On January 1, 2019, Nevada Company granted share options to each of the 300 employees working in the sales department. The share options vest at the end of a 3-year period provided that the employees remain the entity’s employ and provided the volume of sales will increase by more than 10% per year. The fair value of each share option on grant date is P30. The par value per share is P50 and the option price is P60.If the sales increase by more than 10%, each employee will receive 200 share options. If the sales increase by more than 15%, each employee will receive 300 share options. On December 31, 2019, the sales increased by more than 10% but not more than 15% and no employees have left the entity. On December 31, 2020, sales increased by more than 15% and no employees have left. On December 31, 2021, the sales increased by more than 15% and 50 employees left the entity. All of the share options were exercised on December 31, 2021. What amount should be recognized as compensation…
On January 1, 2019, Nevada Company granted share options to each of the 300 employees working in the sales department. The share options vest at the end of a 3-year period provided that the employees remain the entity’s employ and provided the volume of sales will increase by more than 10% per year. The fair value of each share option on grant date is P30. The par value per share is P50 and the option price is P60.If the sales increase by more than 10%, each employee will receive 200 share options. If the sales increase by more than 15%, each employee will receive 300 share options. On December 31, 2019, the sales increased by more than 10% but not more than 15% and no employees have left the entity. On December 31, 2020, sales increased by more than 15% and no employees have left. On December 31, 2021, the sales increased by more than 15% and 50 employees left the entity. All of the share options were exercised on December 31, 2021. What amount should be recognized as compensation…
On January 1, 2020, Jangga Group grants share options to each of its 100 employees working in the sales department. Each of these employees receives 10 share options. The share options will vest on December 31, 2022, provided that the employees remain in the entity's employ. On January 1, 2021, fair value per option is P30. On December 31, 2020, it is expected that during the whole vesting period of three years, 10% of the employees will leave Jangga Group. On December 31, 2021, this expectation is revise to 30%. Finally, by December 31, 2020, 20% of the employees left Jangga Group. There is also a performance condition in addition to the service condition. According to the performance condition, the options only vest if Jangga Group's share price on December 31, 2022 exceeds its share price on January 1, 2020 by at least 20%. On December 31, 2020 and on December 31, 2021, it is expected that this target will be met. However, the target is not met by December 31, 2022. Based on the…
On January 1, 2020, Marie Company granted 200 share options to 300 employees, conditional upon the employees remaining in the entity's employ during the vesting period. The share options will vest over a three- year period. The fair value of each share optiom is P50. By the end of 2020 employees have left and based on a weighted average probability, a further 10 employees will leave during the vesting period. By the end of 2021, only 8 employees have left and a further 32 employees will leave during 2022. By the end of 2022, only 25 employees left the entity. Required: Compute the compensation expense for 2020, 2021 and 2022 as a result of the share options.
On January 1, 2020, ABC Company granted 80,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is P65 and the par value per share is P50.At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably.The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are P68 on December 31, 2020, P74 on December 31, 2021, P82 on December 31, 2022 and P90 on December 31, 2023. All share options were exercised on December 31, 2023.What is the compensation expense for 2022?
Riyo Company granted 100 share options to each of its 200 employees on January 1, 2020. Each option provides the employees to purchase one ordinary share (with P100 par value) of the company at P180 per share. On date of grant, the fair value of each option is P30. In order for the option plan to vest, the employees must be employed in the company for the next three years. The options can be exercised from January 1 until December 31, 2023. On January 1, 2020, 20% of the employees are estimated to leave until the end of the vesting period. Actual and revised estimate of employees leaving the company for each year 2020, 2021, and 2022 are as follows:· 2020: 8 employees left; additional 10 employees in 2021 and 2022· 2021: 12 employees left; additional 7 employees in 2022· 2022: 8 employees leftHow much is the compensation expense for each year 2020, 2021, and 2022, respectively? a. 182,000 ; 346,000 ; 516,000 b. 192,000 ; 168,000 ; 156,000 c. 182,000 ;…