VB granted share options to its 500 employees on 1 August 20X6. Each employee will receive 1,000
Question:
VB granted share options to its 500 employees on 1 August 20X6. Each employee will receive 1,000 share options provided they continue to work for VB for the four years following the grant date. The fair value of the options at the grant date was $1.30 each. In the year ended 31 July 20X7, 20 employees left and another 50 were expected to leave in the following three years. In the year ended 31 July 20X8, 18 employees left and a further 30 were expected to leave during the next two years.
Required:
Prepare the journal entries to record the charge to VB’s statement of profit or loss and other comprehensive income for the year ended 31 July 20X8 in respect of the share options, in accordance with IFRS 2 Share-based Payments.
Step by Step Answer:
International Financial Reporting And Analysis
ISBN: 9781473766853
8th Edition
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn