On January 1, 2020, ABC Company granted to employees a share-based payment with cash and share alternative. The provisions include the right to a cash payment equal to the value of 10,000 phantom shares or 15,000 ordinary shares with a par value of P40. The grant is conditional upon the completion of three years’ service. If the employees choose the share alternative, the shares must be held for three years after the vesting date. At grant date, the share price is P60. At the end of 2020, 2021 and 2022 the share prices are P63, P66 and P72, respectively. After taking into account the effect of vesting restrictions, the entity estimated that the fair value of the share alternative on grant date is P45. On January 1, 2023, the employees selected the share alternative. What amount of share premium should be recorded from the issuance of shares on January 1, 2023?
On January 1, 2020, ABC Company granted to employees a share-based payment with cash and share alternative.
The provisions include the right to a cash payment equal to the value of 10,000 phantom shares or 15,000 ordinary shares with a par value of P40.
The grant is conditional upon the completion of three years’ service. If the employees choose the share alternative, the shares must be held for three years after the vesting date.
At grant date, the share price is P60. At the end of 2020, 2021 and 2022 the share prices are P63, P66 and P72, respectively.
After taking into account the effect of vesting restrictions, the entity estimated that the fair value of the share alternative on grant date is P45.
On January 1, 2023, the employees selected the share alternative.
What amount of share premium should be recorded from the issuance of shares on January 1, 2023?
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