Melissa Corporation granted share options to its employees with a fair value of P4,500,000 on January 1, 2016. The options vest in three years and the options are exercisable starting January 1, 2019 until December 31, 2019. On December 31, 2016, it was estimated that 5% of employees will leave the entity during the vesting period. This estimate was revised to 6% during the year 2017. On December 31, 2018, employees’ record indicates that 90% of the employees stayed and became entitled to the options. 1. What would be the expense charged during the year ending December 31, 2016? 2. What would be the expense charged during the year ending December 31, 2017?
Melissa Corporation granted share options to its employees with a fair value of P4,500,000 on January 1, 2016. The options vest in three years and the options are exercisable starting January 1, 2019 until December 31, 2019. On December 31, 2016, it was estimated that 5% of employees will leave the entity during the vesting period. This estimate was revised to 6% during the year 2017. On December 31, 2018, employees’ record indicates that 90% of the employees stayed and became entitled to the options. 1. What would be the expense charged during the year ending December 31, 2016? 2. What would be the expense charged during the year ending December 31, 2017?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 25CE
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Melissa Corporation granted share options to its employees with a fair value of P4,500,000 on January 1, 2016. The options vest in three years and the options are exercisable starting January 1, 2019 until December 31, 2019. On December 31, 2016, it was estimated that 5% of employees will leave the entity during the vesting period. This estimate was revised to 6% during the year 2017. On December 31, 2018, employees’ record indicates that 90% of the employees stayed and became entitled to the options.
1. What would be the expense charged during the year ending December 31, 2016?
2. What would be the expense charged during the year ending December 31, 2017?
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