On 01/07/2019 Amla, Giloy & Tulsi Ltd., grants 200 options to each of its 2100 employees at *.120 when the market price is *.400.The vesting date is 31st March, 2022 and the exercise date is 31st March, 2023. At the end of the year 1, the company founds that 100employees had left and estimated the expected annual forfietures rate at 10%. Fair value of a share issued under ESOP was .186. At theend of year 2, the company found that 80 employees had left and reestimated the expected annual forfictures at 5%. Fair value of shareIssued under ESOP was 2.208. At the end of year 3, the company found that 192 employees had left. Fair value of share issued under ESOPwas 2.160. Only 1700 employees exercised their options on 31st March, 2023. The face value of equity share is 2.10 per share. As perInd AS 102 calculate the expenses to be recognised in Year 1, Year 2 and Year 3 by Fair Value Method and calculate the Value of optionsforfeited.

To calculate the expenses to be recognized in Year 1, Year 2, and Year 3 by the Fair Value Method…

Answered: On 01/07/2019 Amla, Giloy & Tulsi Ltd.,…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

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