Question: Exercise 8.3 ACCOUNTING FOR A GRANT WHERE THE NUMBER OF EQUITY INSTRUMENTS EXPECTED TO VEST VARIES Tiger Ltd grants 80 share options to

Exercise 8.3 ★ ★ ACCOUNTING FOR A GRANT WHERE THE NUMBER OF EQUITY INSTRUMENTS EXPECTED TO VEST VARIES Tiger Ltd grants 80 share options to each of its 200 employees. Each grant is conditional on the employee working for the company for the 3 years following the grant date. On grant date, the fair value of each share option is estimated to be $12. On the basis of a weighted average probability, the company estimates that 20% of its employees will leave during the 3-year vesting period. During year 1, 15 employees leave and the company revises its estimate of total employee departures over the full 3-year period from 20% to 22%. Required Prepare a schedule setting out the annual and cumulative remuneration expense for year 1.

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