A company grants 100 share options to each of its 50 employees conditional on them remaining in post for two years. The fair value of one option at the grant date was £4. In year one three employees left and it was estimated that a further six world leave over the remainder of the vesting period. In year two five employees left. The amounts recorded in the financial statements at the end of year two would be: O a. Expense £8,600, Liability £16,800 O b. Expense £3,700, Liability £8,400 O c. Expense £10,000, Liability £20,000 O d. Expense £9,400, Liability £18,000

A company grants 100 share options to each of its 50 employees conditional on them remaining in post for two years. The fair value of one option at the grant date was £4. In year one three employees left and it was estimated that a further six world leave over the remainder of the vesting period. In year two five employees left. The amounts recorded in the financial statements at the end of year two would be: O a. Expense £8,600, Liability £16,800 O b. Expense £3,700, Liability £8,400 O c. Expense £10,000, Liability £20,000 O d. Expense £9,400, Liability £18,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 30P

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