On January 1, 2020, BTS Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022? P1,425,000

On January 1, 2020, BTS Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022? P1,425,000

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 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...

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On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25 executives, with the number of shares based on the yearly increase in sales. At the end of 2019, based on a 10% increase in sales, it expects that each executive will be granted 150 options and that the fair value of an option expected to vest is 15.75. Phoenix expects a turnover rate of 15% over the 3-year service period. Determine the compensation expense for 2019 for this plan.
On January 1, 2020, Green Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 90% of the employees remained in the company. What is the amount charged to compensation expense in year 2020?
On January 1, 2020, EM Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022? A.P1,500,000B.P1,425,000C.P780,000D.P1,395,000
On January 1, 2020, ABC Corporation granted share options to its employees with a fair value of P4,500,000. The options vest in three years and are exercisable starting January 1, 2023 until Dec. 31, 2023. On December 31, 2020, it was estimated that 5% of the employees will leave the Company. This estimate was revised to 6% during the year 2021. On December 31, 2022, it was determined that 80% of the employees remained in the company. What is the amount charged to compensation expense in 2022? A. P1,500,000 B. P1,425,000 C. P1,395,000 D. P780,000
On April 1, 2020, an entity subject to IFRS grants 60,000 share options to its employees. Each option has an exercise price of $18, and the fair value of the share options are estimated at $340,000. The vesting period ends on December 31, 2022, and the exercise period ends on December 31, 2023. On December 31, 2020, management estimates that 88% of the options will vest. On December 31, 2021, that estimate changes to 85%. What is the compensation expense on this share option plan for the year ended December 31, 2021? Question 14 options: a) $92,934 b) $93,783 c) $102,309 d) $105,091
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?
On July 1, 2020, Paulina, Inc. granted share options to executives, which options allow them to purchase 20,000 ordinary shares at 25 per share. The options will vest provided that the executives will be employed in the company for the next two years. The options can be exercised for a one-year period starting July 1, 2022. By end of 2020, the market price of Paulina’s ordinary share as P33 per share. The fair value of the options cannot be reliably determined. All executives are expected to remain in the company for the whole vesting period. How much should Paulina charge to compensation expense for the year ended December 31, 2020? a. P0 b. P40,000 c. P80,000 d. P160,000
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, 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, 2020, Jangga Group grants share options to each of its 100 employees working in the sales department. Each of these employees receives 10 share options. The share options will vest on December 31, 2022, provided that the employees remain in the entity's employ. On January 1, 2021, fair value per option is P30. On December 31, 2020, it is expected that during the whole vesting period of three years, 10% of the employees will leave Jangga Group. On December 31, 2021, this expectation is revise to 30%. Finally, by December 31, 2020, 20% of the employees left Jangga Group. There is also a performance condition in addition to the service condition. According to the performance condition, the options only vest if Jangga Group's share price on December 31, 2022 exceeds its share price on January 1, 2020 by at least 20%. On December 31, 2020 and on December 31, 2021, it is expected that this target will be met. However, the target is not met by December 31, 2022. Based on the…
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.