When share options granted vest base on a service condition (ifrs2) a. Total fair value of the share options granted > Total compensation expense recognized over the vesting period b. Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year c. Share options outstanding balance at the end of second year is equal to Compensation Expense for second year d. Total fair value of the share options granted = Total compensation expense recognized over the vesting period

When share options granted vest base on a service condition (ifrs2) a. Total fair value of the share options granted > Total compensation expense recognized over the vesting period b. Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year c. Share options outstanding balance at the end of second year is equal to Compensation Expense for second year d. Total fair value of the share options granted = Total compensation expense recognized over the vesting period

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 3C

See similar textbooks

Similar questions

When share options granted vest base on a service condition Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year Total fair value of the share options granted = Total compensation expense recognized over the vesting period Share options outstanding balance at the end of second year is equal to Compensation Expense for second year Total fair value of the share options granted > Total compensation expense recognized over the vesting period
1. When share options granted vest base on a service condition a. Total fair value of the share options granted > Total compensation expense recognized over the vesting period b. Share options outstanding balance at the end of first year is not equal to Compensation Expense for first year c. Total fair value of the share options granted = Total compensation expense recognized over the vesting period d. Share options outstanding balance at the end of second year is equal to Compensation Expense for second year 2. When share appreciation rights are granted to employees a. expense, liability and equity accounts are recognize b. expense and equity accounts are recognize c. expense and liability accounts are recognize d. liability and equity account are recognized 3. Provided the specified vesting conditions, if any, are met, share-base payment arrangement is an arrangement between an entity and another party that entitles the other party to receive a. Cash or…
In what circumstances is compensation expense immediately recognized under a share option plan? in circumstances when the options are granted for prior service and the options are immediately exercisable in circumstances when the options are exercisable within two years for services rendered over the next two years in all circumstances in no circumstances is compensation expense immediately recognized
Assume that TPL has a stock-option plan for top management. Each stock option represents the right to purchase a share of TPL $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. TPL has 75,0 00 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant: Exercise price for options $31; Market price at grant date (January 1, 2020) $31; Fair value of options at grant date (January 1, 2020) $2; Service period 4 years. Prepare the journal entry (ies) for the first year of the plan. Prepare the journal entry (ies) for the first year of the plan assuming that, rather than options, 2,500 shares of restricted stock were granted at the beginning of 2020. Now assume that the market price of TPL stock on the grant was $35 per share. Repeat the requirements for (a) and (b). TPL eould like to implement an employee stock-purchase plan for rank-and-file employees,but it would like…
Assume that Sarazan Company has a share-option plan for top management. Each share option represents the right to purchase a $1 par value ordinary share in the future at a price equal to the fair value of the shares at the date of the grant. Sarazan has 5,000 share options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant. Exercise price for options 1$40 Market price at grant date (January 1, 2020) 1$40 Fair value of options at grant date (January 1, 2020) 1$6 Service period 15 years Instructions a. Prepare the journal entry(ies) for the first year of the share-option plan. b. Prepare the journal entry(ies) for the first year of the plan assuming that, rather than options, 700 shares of restricted shares were granted at the beginning of 2020. c. Now assume that the market price of Sarazan shares on the grant date was $45 per share. Repeat the requirements for (a) and (b). d. Sarazan would like to…
PROBLEM 3 : At the beginning of Year 1, an entity grants 1,000 share options to 50 employees. The share options will vest at the end of Year 3, provided the employees remain in service until then. The share options have a life of 10 years. The exercise price is 60 and the entity’s share price is also P60 at the end of the grant. The entity’s share price have a par value of P20.At the date of grant, the entity concludes that it cannot estimate reliably the fair value of the share options granted. At the end of Year 1, three employees have ceased employment and the entity estimates that a further seven employees will leave during Years 2 and 3. Hence, the entity estimates that 80% of the share options will vest. Two employees leave during Year 2, and the entity revises its estimate of the number of share options that it expects will vest to 86%. Two employees leave during year 3. Hence, 43,000 share options vested at the end of year 3.The entity’s share price during Years 1 to 10, and…
PROBLEM 3 : At the beginning of Year 1, an entity grants 1,000 share options to 50 employees. The share options will vest at the end of Year 3, provided the employees remain in service until then. The share options have a life of 10 years. The exercise price is 60 and the entity’s share price is also P60 at the end of the grant. The entity’s share price have a par value of P20.At the date of grant, the entity concludes that it cannot estimate reliably the fair value of the share options granted. At the end of Year 1, three employees have ceased employment and the entity estimates that a further seven employees will leave during Years 2 and 3. Hence, the entity estimates that 80% of the share options will vest. Two employees leave during Year 2, and the entity revises its estimate of the number of share options that it expects will vest to 86%. Two employees leave during year 3. Hence, 43,000 share options vested at the end of year 3.The entity’s share price during Years 1 to 10, and…
Assume that Sarazan SA has a shareoption plan for top management. Each share option represents the right to purchase a R$1 par value ordinary share in the future at a price equal to the fair value of the shares at the date of the grant. Sarazan has 5,000 share options outstanding, which were granted at the beginning of 2022. The following data relate to the option grant. Exercise price for options R$40 Market price at grant date (January 1, 2022) R$40 Fair value of options at grant date (January 1, 2022) R$6 Service period 5 years Instructions Prepare the journal entry or entries for the first year of the share-option plan. Prepare the journal entry or entries for the first year of the plan assuming that, rather than options, 700 shares of restricted shares were granted at the beginning of 2022. Now assume that the market…
On January 1, 2021, Katya Company granted share options to the employees. The total expense to the vesting date on December 31, 2024 has been calculated at P7,500,000. The entity has decided to settle the award early on December 31, 2023. The expense charged since the date of grant was P2,100,000 for 2021 and P2,300,000 for 2022. The expense that would have been charged for 2023 is P2,500,000. What amount should be recognized as compensation expense for 2023?
On January 1, 2021, an entity granted to employees 10,000 share options. On January 1, 2022, the entity granted to employees an additional 20,000 share options. Date January 1, 2021 December 31, 2021 January 1, 2022 December 31, 2022 Fair value of share 20 22 25 30 The shares vest at the end of a four-year period. There are no forfeitures. What amount should be recorded as compensation expense for 2022?
According to IFRS, once the total compensation is measured at the date of grant A. It can be changed in future periods related to a change in market conditions B. It can be changed to reflect the rise or fall in the market price of the company's ordinary shares C. A company is permitted to adjust tge number of share options expected to the actual number of instruments vested D. All of the choices are correct
S1: Shares issued to settle a liability are included in the EPS calculation fromthe settlement date. S2: Shares to be issued upon the conversion of amandatorily convertible instrument are include in the calculation of basicEPS from the date of conversion for the shares A. both are trueB. both are falseC. S1 is trueD. S2 is true