Gordo granted shares options to its employees on 1 October x2 as follows: On 30 September X3
Gordo granted shares options to its employees on 1 October x2 as follows:
On 30 September X3 - employees could potentially receive 2 million ordinary shares of RM1 each. Estimated 90% of the employees achieved their performance target and were eligible for the shares. The fair value was RM2.
On 30 September x4 - a further 3 million ordinary shares could be vested. The options due to be vested on 30 September x4 relate to the performance of the employees over the period 1 October x2 to 30 September x4. It is hoped that 96% of the employees will achieve their performance targets. The fair value was RM3.
Explain the effect of the above options in the financial statement of Gordo at 30 September x3 and 30 September x4.