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Calculate the remuneration expense for the three years

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Question - An entity grants 150 share options to each of its 450 employees. Each grant is conditional upon the employee working for the entity for the next three years. The entity estimates that the fair value of each share option is $14.00.

At grant date, the entity estimates that 25 per cent of employees will leave during the three-year period and therefore forfeit their rights to the share options.

REQUIRED -

(a) Calculate the remuneration expense for the three years.

(b) Prepare the journal entries for the three years.

Reference no: EM132557823

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