Reality Corporation decided to issue 1,000 share options to an employee in lieu of many years' service. However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable entities.The exercise price is P100 per share and the options were granted on January 1, 2016 when the value of each share was also estimated at P100 per share.At the end of the financial year, December 31, 2016, the value of the shares was estimated at P150 per share and the options vested on that date. What value should be placed on the share options issued for the year ended December 31, 2016? a. 25,000 b. 150,000 C. 50,000 d. 100,000
Reality Corporation decided to issue 1,000 share options to an employee in lieu of many years' service. However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable entities.The exercise price is P100 per share and the options were granted on January 1, 2016 when the value of each share was also estimated at P100 per share.At the end of the financial year, December 31, 2016, the value of the shares was estimated at P150 per share and the options vested on that date. What value should be placed on the share options issued for the year ended December 31, 2016? a. 25,000 b. 150,000 C. 50,000 d. 100,000
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 26CE
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