When the financial controller was providing details on the employee share schemes at Knappa, it was...

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When the financial controller was providing details on the employee share schemes at Knappa, it was identified that share options granted to the production staff on 1 July 2022 were not accounted for in the year ended 30 June 2023 financial statements. On 1 July 2022, 1,000 share options were granted to each of Knappa's 30 production employees, on the condition that the employees remain with the company for the next two years and that the share price increases from $26.50 per share on 1 July 2022 to $35 per share on 30 June 2024. If the share price target at 30 June 2024 is achieved, the share options can be exercised at any time over the subsequent 12 months (ie up to 30 June 2025). The fair value of each share option at the grant date was $5.60. You have obtained the following information: Year 30.06.20231 30.06.2024 Number of employees who departed during the year No of employees expected to depart in future years Knappa share price per share ($) 1 4 2 N/A 28.35 32.15 1. This information was obtained at 30 June 2023; however, the appropriate accounting was not recognised. The impact of the employee share scheme is considered material to the financial statements. When the financial controller was providing details on the employee share schemes at Knappa, it was identified that share options granted to the production staff on 1 July 2022 were not accounted for in the year ended 30 June 2023 financial statements. On 1 July 2022, 1,000 share options were granted to each of Knappa's 30 production employees, on the condition that the employees remain with the company for the next two years and that the share price increases from $26.50 per share on 1 July 2022 to $35 per share on 30 June 2024. If the share price target at 30 June 2024 is achieved, the share options can be exercised at any time over the subsequent 12 months (ie up to 30 June 2025). The fair value of each share option at the grant date was $5.60. You have obtained the following information: Year 30.06.20231 30.06.2024 Number of employees who departed during the year No of employees expected to depart in future years Knappa share price per share ($) 1 4 2 N/A 28.35 32.15 1. This information was obtained at 30 June 2023; however, the appropriate accounting was not recognised. The impact of the employee share scheme is considered material to the financial statements.