1. On 1 January x2, Rain Bhd granted its senior executives 20,000 share options conditional upon...
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1. On 1 January x2, Rain Bhd granted its senior executives 20,000 share options conditional upon them remaining in service for four years until 31 December x5. Also, the share options could not be exercised unless the share price increased from RM15 to RM35 by the end of 31 December x5. The exercise period was from 1 January x6 to 31 December x7. Rain Bhd estimated that the fair value of the option was RM6 after taking into consideration the potential increase in share price. The exercise price was RM20. Required: a. Calculate the expense for each year. b. Prepare the extract of statement of financial position at the end of each year, assuming all the options are exercised on 1 February x7. 2. On 1 January x4, Flora Bhd granted its 100 production staff 1,000 share options each. The exercise price was RM8. The staff were required to remain in service for three years. The company valued the share options at RM6. The company estimated that only 80 staff members would remain in service by the end of the vesting period. Required: a. Calculate the expense for each year. b. Prepare the extract of the statement of financial position at the end of each year, assuming all the options were exercised on 1 February x7. 3. On 1 January x2, Eve Bhd granted its 50 sales staff 5,000 share options each. The exercise price was RM10. The staff were required to remain in service for three years. The company valued the share options on 1 January x2 at RM6. In x2, five employees left the service and the company estimated that only 35 of these staff would be entitled to the award. By the end of year x3, another five left the service and the company estimated that another two would leave the service. During year x4, no staff left the company. Required: a. Calculate the expense for each year. b. Prepare the extract of the statement of financial position at the end of each year, assuming all the options were exercised on 1 February x5. 1. On 1 January x2, Rain Bhd granted its senior executives 20,000 share options conditional upon them remaining in service for four years until 31 December x5. Also, the share options could not be exercised unless the share price increased from RM15 to RM35 by the end of 31 December x5. The exercise period was from 1 January x6 to 31 December x7. Rain Bhd estimated that the fair value of the option was RM6 after taking into consideration the potential increase in share price. The exercise price was RM20. Required: a. Calculate the expense for each year. b. Prepare the extract of statement of financial position at the end of each year, assuming all the options are exercised on 1 February x7. 2. On 1 January x4, Flora Bhd granted its 100 production staff 1,000 share options each. The exercise price was RM8. The staff were required to remain in service for three years. The company valued the share options at RM6. The company estimated that only 80 staff members would remain in service by the end of the vesting period. Required: a. Calculate the expense for each year. b. Prepare the extract of the statement of financial position at the end of each year, assuming all the options were exercised on 1 February x7. 3. On 1 January x2, Eve Bhd granted its 50 sales staff 5,000 share options each. The exercise price was RM10. The staff were required to remain in service for three years. The company valued the share options on 1 January x2 at RM6. In x2, five employees left the service and the company estimated that only 35 of these staff would be entitled to the award. By the end of year x3, another five left the service and the company estimated that another two would leave the service. During year x4, no staff left the company. Required: a. Calculate the expense for each year. b. Prepare the extract of the statement of financial position at the end of each year, assuming all the options were exercised on 1 February x5.
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1 Rain Bhd Share Options a Calculation of the annual expense Year x2 Grant Date 20000 options RM6 RM... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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