Francesca Company decided to issue 1,000 share options to an employee in lieu of many years service.

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Question:

Francesca Company decided to issue 1,000 share options to an employee in lieu of many year’s 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 Php 100 per share and the options were granted at the beginning of the current year. When the value of the shares was also estimated at Php 100 per share. At the end of the current financial year, the value of the shares was estimated at Php 150 per share and the options vested on that date. Required: 10. What value should be placed on the share options issued for the current year? ANSWER WHAT IS REQUIRED.