Question: A plc issues 50,000 share options to its employees on 1 January 2008 which the employees can only exercise if they remain with the company

A plc issues 50,000 share options to its employees on 1 January 2008 which the employees can only exercise if they remain with the company until 31 December 2010. The options have a fair value of £5 each on 1 January 2008.
It is expected that the holders of options over 8,000 shares will leave A plc before 31 December 2010. In March 2008 adverse press comments regarding A plc's environmental policies and a downturn in the stock market cause the share price to fall significantly to below the exercise price on the options. The share price is not expected to recover in the foreseeable future.
Required:
What charge should A plc recognise for share options in the financial statements for the year ended 31 December 2008?

Step by Step Solution

★★★★★

3.36 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The expected total cost of the sharebased payment is 210000 50000 8000 5 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1360-B-A-F-R(4045).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

On January 1, 2018, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2018, 30% will vest on December 31, 2019, and the remaining 40%...

On January 1, 2018, Western Wear. Inc., granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2018, 30% will vest on December 31, 2019, and the remaining 40%...

On January 1, 2015, Western Wear, Inc. granted 100,000 stock options to its employees. 30% of these options will vest on December 31, 2015, 30% will vest on December 31, 2016, and the remaining 40%...

1. Prepare a statement of cash flows using the indirect method for the ABC Co for the year 2012. ABC Co. Balance Sheet 1/1/2012 12/31/2012 Increase/(Decrease) Cash 700,000 840,000 140,000 Marketable...

Hi, there are 20 mcq questions as per attached document, with regards to intermediate financial reporting, kindly answer all the questions (even those already answered, kindly redo them should the...

Please read carefully, all necessary information is attached, need to show work let me know if there is something missing. Microsoft word can be used thanks. You are Cindy, completing the analysis...

please help the working for additional information no 1 until no 8. Thank you QUESTION 1 Golden Phoenix Bhd is a manufacturing company engaged in food and beverages industries. The company was listed...

Lodge Outfitters issues 1,200 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming the issue price is $12 per share, determine the financial statement effects...

The Paymor Rental Car Agency rents cars in a small town. It wants to determine how many rental cars it should maintain. Based on market projections and historical data, the manager has determined...

Question 4 2 pts Entity - level controls can have a pervasive effect on the entity's ability to meet control criteria. Which one of the following is not an entityelevel control? Controls to monitor...

11 A stock was priced at $150 per share at the end of 2009. The following table shows dividends per share paid during each year and the price of the stock at the end of the year for the following...

Cryptic plc extracted its trial balance on 30 June 20X5 as follows: The following information is relevant: (i) The company discontinued a major activity during the year and replaced it with another....

On 1 January 20X8, Grabbit plc entered into an agreement to lease a widgeting machine for general use in the business. The agreement, which may not be terminated by either party to it, runs for six...

(a) When accounting for finance leases, accountants prefer to overlook legal form in favour of commercial substance. Required: Discuss the above statement in the light of the requirements of IAS 17...

a)What type of tests could you conduct that would allow you to compare each treatment group to the other (2 at a time) without inflating the type I error ()? b)Why is it important to make sure you do...

The different types of samplings are: A. Probability B. Judgement C. Mixed D. Probability, judgement and mixed. If the sample size is too small, it may not _______________ represent the population or...

Job is determined that he can afford to pay $800 per month toward purchasing a new convertible sports car. Job notices an advertisement in the paper for a bank loan at the rate of 8% pa and he wants...