Scribd
Upload
20 views1 page

CFAS Chapter 20 Problem 2

The document discusses share options granted to employees of an entity. It provides information on the number of options granted, their vesting period, estimated employee departure rates over time, and how to calculate salaries expense for the share options in each year.

Uploaded by

jelou ubag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
20 views1 page

CFAS Chapter 20 Problem 2

The document discusses share options granted to employees of an entity. It provides information on the number of options granted, their vesting period, estimated employee departure rates over time, and how to calculate salaries expense for the share options in each year.

Uploaded by

jelou ubag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

CFAS Chapter 20 Problem 2

On January 1,20x4, the entity a has granted 600 share options to each of its 100 employees. The
options vest in three years. Each share option has a fair value of 100 on the grant date. Information
on employee departure is as follows:

• January 1,20x4: an estimate of employees leaving the entity during the vesting period-4%
• December 31,20x4: revision of estimate of employees leaving to 5% before vesting date
• December 31,20x5: revision of estimate of employees leaving to 6% before vesting date
• December 31,20x6: actual employees leaving 5%

1. How much is the salaries expense in 20x4? 1,900,000


SOLUTION:
(600*100*100)*95%*1/3
2. How much is the salaries expense in 20x5? 1,860,000
SOLUTION:
(600*100*100)*94%*2/3=3,760,000-1,900,000
3. How much is the salaries expense in 20x6? 1,940,000
SOLUTION:
(600*100*100)*95%*3/3=5,700,000-3,760,000

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy