On June 30, 2019, New Company granted compensatory share option for 30,000 P20 par value ordinary shares to certain key employees. The market price of the share on the 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 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 should be recognized as share premium upon exercise of share options in 2022?
On June 30, 2019, New Company granted compensatory share option for 30,000 P20 par value ordinary shares to certain key employees. The market price of the share on the 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 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 should be recognized as share premium upon exercise of share options in 2022?
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 7E
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On June 30, 2019, New Company granted compensatory share option for 30,000 P20 par value ordinary shares to certain key employees. The market price of the share on the 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 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 should be recognized as share premium upon exercise of share options in 2022?
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