The question is based on Australian Accounting Standards. Please commit if you sure about the concept. I request you to be ethical and don't just answer anything irrelevant for the sake of money. Thanks

Alpha Ltd operates a share option plan for its officers, employees, and consultants for up to 10% of

its outstanding shares. Under this plan, the exercise price of each option equals the closing market

price of the shares on the day before the grant. Each option has a term of 5 years and vests one-

third on each of the 3 years following grant date. Before this financial period, Alpha Ltd has

accounted for its share option plan on settlement date and no expense has been recognised.

REQUIRED:

Prepare an appropriate memorandom outlining the disclosures that will need to be made in Alpha Limited Financial Statement following the adoption of AASB 2 Share Based Payment.

Words required 700