Calculate the charge to be included in profit and loss

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Question - On 1 April 2019, Basmati plc granted 100 share options to 200 production employees. The following information is available:

-The fair value of share options:

-1 April 2019: £2 per option

-31 March 2020: £2.50 per option

-31 March 2021: £3 per option

-The options will vest on 31 March 2022 to any employees that remain with Basmati plc until that date. By 31 March 2020, 20 employees had left the company, and another 15 were expected to leave over the next two years. By 31 March 2021, another 10 employees had left the company, and another 10 were expected to leave over the next year.

Calculate the charge to be included in profit and loss in relation to this share-based payment for the financial year ended 31 March 2021.

Reference no: EM132975161

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