On 1 July 2021 ABC Limited granted 200 share options to each of its 59 employees. Each grant is conditional on the employee working for the company for the next two years. The fair value of each option is estimated to be $9 at the grant date. Salt & Pepper estimates that 6% of its employees will leave during the two year period and therefore forfeit their rights to the share options.

During the year ended 30 June 2022 6 employees left. At this time the company revised its estimate of total employee departures over the full two-year period to 25%.

During the year ended 30 June 2023 a further 5 employees left.

The amount to be recognised as an expense by ABC for the year ended 30 June 2023 is:

(Enters your calculated answer as a whole number without dollar sign, comma or decimal place. Answer field accepts error of up to +/-50 to

the correct answer.

When percentage (%) is given as the employee attrition rate, use the calculated number without rounding it to a whole number for your calculation. i.e. It is possible that employee number is expressed as FTE (full time equivalent) that may not be a whole number )

Answer rating: 100% (QA)

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