A company granted $4,000$ share options to each of its $6$ directors on $01$ January $2022$ on

condition that that the directors would be in employment on $31$ December $2024.$ The

option will be vested on $31$ December $2024.$ The fair value of each option on $01$ January

$2022$ was $$20$ and it is anticipated that the option will only vest when the share price

reaches $$28.$ The share price at $31$ December $2022$ is $$16$ and is expected to rise over

the next two years, it is anticipated that only $5$ directors will be employment on $31$

December $2024.$

Required:

Journal entries to record this transaction as at $31$ December $2024($ignore market

condition, the effect of increase in share price$)$

Answer rating: 100% (QA)

Journal entries to record share option grant as at 31 Decemb... View the full answer