On 1 April 20W9 Oliver granted share options to 20 senior executives. The options are due to vest on 31 March 20X2 provided the senior executives remain with the company for the period between 1 April 20W9 and 31 March 20X2. The number of options vesting to each director depends on the cumulative profits over the three-year period from 1 April 20W9 to 31 March 20X2:

● 10,000 options per director if the cumulative profits are between €5 million and €10 million;

● 15,000 options per director if the cumulative profits are more than €10 million.

On 1 April 20W9 and 31 March 20X0 the best estimate of the cumulative profits for the three-year period ending on 31 March 20X2 was €8 million. However, following very successful results in the year ended 31 March 20X1 the latest estimate of the cumulative profits in the relevant three-year period is €14 million.

On 1 April 20W9 it was estimated that all 20 senior executives would remain with Oliver for the three-year period but on 31 December 20W9 one senior executive left unexpectedly. None of the other executives have since left and none are expected to leave before 31 March 20X2.

A further condition for vesting of the options is that the share price of Oliver should be at least €12 on 31 March 20X2. The share price of Oliver over the last two years has changed as follows:

● €10 on 1 April 20W9;

● €11.75 on 31 March 20X0;

● €11.25 on 31 March 20X1.

On 1 April 20W9 the fair value of the share options granted by Oliver was €4.80 per option. This had increased to €5.50 by 31 March 20X0 and €6.50 by 31 March 20X1.

Required:

Produce extracts, with supporting explanations, from the statements of financial position at

31 March 20X0 and 20X1 and from the statements of comprehensive income for the years ended

31 March 20X0 and 20X1 that show how the granting of the share options will be reflected in the financial statements of Oliver. Ignore deferred tax.