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    Question Molar

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    Kian Tuck
    The document outlines the terms of a share option grant including the grant date, vesting date and period, and expiry date. It then provides calculations of the periodic and cumulative share-based payment expenses over a three year vesting period based on changing numbers of employees and share prices. Accounting entries are also shown to record the expenses each year.

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    Question Molar

    Uploaded by

    Kian Tuck
    8 views3 pages
    The document outlines the terms of a share option grant including the grant date, vesting date and period, and expiry date. It then provides calculations of the periodic and cumulative share-based payment expenses over a three year vesting period based on changing numbers of employees and share prices. Accounting entries are also shown to record the expenses each year.

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    The document outlines the terms of a share option grant including the grant date, vesting date and period, and expiry date. It then provides calculations of the periodic and cumulative share-based payment expenses over a three year vesting period based on changing numbers of employees and share prices. Accounting entries are also shown to record the expenses each year.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    8 views3 pages

    Question Molar

    Uploaded by

    Kian Tuck
    The document outlines the terms of a share option grant including the grant date, vesting date and period, and expiry date. It then provides calculations of the periodic and cumulative share-based payment expenses over a three year vesting period based on changing numbers of employees and share prices. Accounting entries are also shown to record the expenses each year.

    Copyright:

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    of 3

    AIA FA 3 May 2011 Q3

    The time line is as follows :Vesting date


    Grant date

    Vesting period

    1 Jun 2011

    Expiry date
    31 May 2014

    Three years vesting period


    Service to be taken up in account across three years

    exercise period
    Outside the scope of IFRS 2

    Year
    1
    2
    3

    Calculation
    250 option x 1,830 emp'ee x $30 x 1/3 years
    250 option x 2,033 emp'ee x $30 x 2/3 years - $4.575m
    250 option x 1,830 emp'ee x $30 = $10.165m

    Periodic
    expenses
    4,575,000.00
    5,590,000.00
    3,560,000.00

    Cumulative
    expenses
    4,575,000.00
    10,165,000.00
    13,725,000.00

    Accounting entries
    Year 1
    Dr Staff costs
    Share option reserves

    4,575,000.00

    Dr Staff costs
    Share option reserves

    5,590,000.00

    Dr Staff costs
    Share option reserves

    3,560,000.00

    4,575,000.00

    Year 2
    5,590,000.00

    Year 3

    Part (ii)

    3,560,000.00

    Year
    1
    2
    3

    Calculation
    200 option x 810 emp'ee x $15 x 1/3 years
    200 option x 795 emp'ee x $16 x 2/3 years - $0.81m
    200 option x 505 emp'ee x $17 - $1.696m

    (+) SAR paid

    200 option x 300 emp'ee x $16.50

    SAR paid

    20 option x 505 emp'ee x $18.00

    Periodic
    expenses
    810,000.00
    886,000.00
    21,000.00
    990,000.00
    101,000.00

    Cumulative
    expenses
    810,000.00
    1,696,000.00
    1,717,000.00
    1,818,000.00

    Accounting entries :Year 1


    Dr Staff costs
    Cr Liabilities

    810,000.00

    Dr Staff costs
    Cr Liabilities

    886,000.00

    Dr Staff costs
    Cr Liabilities

    1,011,000.00

    Dr Staff costs
    Cr Liabilities

    101,000.00

    810,000.00

    Year 2
    886,000.00

    Year 3
    1,011,000.00

    Year 4
    101,000.00

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