On July 1, 2020, TEGUI-ING Co. issued options to its employees. Information on the options is as follows: Weighted average number of unvested share options .............................. 40,000 Weighted average to be recognized over the remainder of the vesting period for employee services to be rendered as consideration for the share options, determined in accordance with PFRS 2 Share-based Payment .....................................₱400,000 Cash exercise price of unvested share options ................................................₱140 Average market price...........................................................................................200 Total outstanding ordinary shares as of January 1, 2020 is 100,000. TEGUI-ING reported profits of ₱4,000,000 in 2020. How much is the basic earnings per share?

On July 1, 2020, TEGUI-ING Co. issued options to its employees. Information on the options is as follows: Weighted average number of unvested share options .............................. 40,000 Weighted average to be recognized over the remainder of the vesting period for employee services to be rendered as consideration for the share options, determined in accordance with PFRS 2 Share-based Payment .....................................₱400,000 Cash exercise price of unvested share options ................................................₱140 Average market price...........................................................................................200 Total outstanding ordinary shares as of January 1, 2020 is 100,000. TEGUI-ING reported profits of ₱4,000,000 in 2020. How much is the basic earnings per share?

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 6C

See similar textbooks

Similar questions

Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
On January 1,2020 , Red Day Company granted 80 share options to each of its 400 employees for the purchase of P 100 par ordinary share at P 140 per share. The fair value of each option on this date was P 22. The employees are required to be in the employ of the company at least until the options vested. The share options will vest as follows: End of 2020, if earnings in 2020 increased of 15% End of 2021, if average annual earnings during 2020 would increase by at least 13%. During 2021, reported earnings increased by 12%. The company reported an increase in 2020 earnings by 13%. At December 31,2020, it was expected that earnings during 2020 would increase by at least 13%. During 2021, reported earnings increased by 12%. No employees left the company during the two year period 2020-2021. All options were exercised during 2022. REQUIRED: a.) All entries during 2020 through 2022. b.) Assume that the reported earnings in 2020 increased by 15%. How much compensation expense would be…
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, COLOR Company granted 250 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 option is P50. By the end of 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. Color's par value per share is 75 and the option price is 100. Compute for the compensation expense for 2020, 2021 and 2022
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, 2020, The Red Hot Company established a share option plan for its selected senior employees. A total of 30,000 options were granted that permit said employees to purchase 30,000 shares of P 20 par ordinary share capital at P 35 per share. Options are exercisable beginning on January 1,2023 and can be exercised anytime from January 1,2023 through December 31,2024.At January 1, 2020, the market price for the Red Hot Company share option was P 8, based on an option pricing model used by the entity. All, but 2,000 share options were exercised on December 31,2023.REQUIRED:a) Computation of compensation expense for years 2020, 2021 and 2022.b) Entries as a result of the foregoing for year 2020 through 2023, inclusive.
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, 2019, an entity granted 100 share options each to 500 employees, conditional upon the employee'sremaining in the entity's employ during the vesting period. The share options vest at the end of a three-year period. Ongrant date, each share option has a fair value of P30. The par value per share is P100 and the option price is P120. OnDecember 31, 2020, 30 employees have left and it is expected that on the basis of a weighted average probability, afurther 30 employees will leave before the end of the three-year period. On December 31, 2021, only 20 employeesactually left and all of the share options are exercised on such date. 26. What amount was credited to share premium when the options were exercised on December 31, 2021?a. 2,250,000 c. 900,000b. 2,350,000 d. 0 PROVIDE COMPUTATION
On June 30, 2019, New York Company granted compensatory share options for 30,000 P20 par value ordinary shares to certain key employees. The market price of the share on that date was P36 and the option price was P30. The Black-Scholes option pricing model measured the total compensation expense to be P5,400,000. The options are exercisable beginning January 1, 2022, provided the key employees are still in entity’s employ at the time of the options are exercised. The options expire on June 30, 2023. On January 15, 2022, when the market price of the share was P42, all 30,000 options were exercised. What amount shall be recognized as share premium upon exercise of the share options in 2022?
Palvinder Inc. has an employee share option plan (ESOP) for its senior executives. On January 1, 2020, 20,000 options were granted under this plan. The options had an exercise price of $20 per share, and 100% of the options have vested. Details of the share option plan are as follows: When granted, the fair value of the ESOP using an appropriate option-pricing model was $120,000. On February 1, 2023, 7,000 options were exercised. The market price of Palvinder’s shares on this date was $24. On July 1, 2024, 8,000 options were exercised. The market price of Palvinder’s shares on this date was $28. The remaining options were not exercised and expired on December 31, 2025. The market price of Palvinder’s shares on this date was $19. On December 31, 2025, when the remaining options expired, what amount should have been credited to the contributed surplus — expired share options account? Assume Palvinder reports under ASPE. Question 13 options: a) $0…
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 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 entityWhat is the compensation expense for 2022?