On April 1, 2007 Gypsy Ltd (GL) granted employee stock option plan (ESOP) to its employees for allotting 100 shares to each employee at a price of  ₹ 20 per share on the vesting date that is after three years from the grant date, i.e., April 1, 2010. The face value and market value of the share on grant date is  ₹ 10 and  ₹ 35, respectively the fair value of such option is  ₹ 12 per share on the grant date. There are 500 employees on the grant date. It is assumed that at the end of first, second and third year there will be 480, 460 and 450 employees, respectively who will be eligible to exercise the option. Show how this employee benefit is to be recognized.