Reference no: EM132654621

Question - On 1 January 20x1 Beta sets up a cash based payment to each of its 100 employees, on condition that they continue to work for the entity until 31 Dec 20x3.

Each emplyee has been allocated 100 shares and will receive a payment in cash if the share price exceeds $10 on 31 December 20x3, of the amount by which it exceeds $10

During 20x1 - 5 employees leave. The entity estimates that a further 12 will leave during 20x2 and 20x3

During 20x2 - 10 employees leave. The entity estimates that a further 15 will leave during 20x3

During 20x3 - 18 employees leave

The fair value per right at the reporting date for each year are shown below:

20x1 $1.00

20x2 $2.00

20x3 $4.00

Required - Calculate the expense that would be recognised in the statement of profit or loss and the liability that would be recognised in the statement of the financial position at the reporting date in each of the three years ended 31 Dec 20x1, 20x2, 20x3.