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 entity What is the share premium upon exercise of the share options on December 31, 2022?
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 entity
What is the share premium upon exercise of the share options on December 31, 2022?
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