Calculate the total cost of the share

Reference no: EM131048932

On 31 December 20X0, the Chief Executive of BC, a listed company, was awarded the option to purchase 1,000,000 shares in the company at £4.50 a share on 30 June 20X4. This option was subject to her achieving specified performance targets for the three years ending on 31 December 20X3. The following information has been provided:

Required:

(a) Calculate the charge for the share option to be included in the financial statements for the years ended 31 December 20X0, 20X1, 20X2, 20X3 and 20X4 using the IAS 37 method;

(b) Calculate the total cost of the share option using:

(i) the IAS 37 method;

(ii) the US FAS 123 and the IFRS 2 methods;

(iii) the UK recommendation.

Reference no: EM131048932

Questions Cloud

Evaluating m3 with 32-bit arithmetic results in overflow : Encrypt the message m = 9876. Note that evaluating m3 with 32-bit arithmetic results in overflow.

The financial statements of rolls-royce plc : The financial statements of Rolls-Royce plc (aero engine manufacturer) for the year ended 31 December 1999 disclose the following matters in relation to the directors:

What is an arbitrage opportunity : What is an arbitrage opportunity & why it is difficult to find an arbitrage opportunity in an efficient market?

Potential risks of doing business in a foreign country : How do cultural distance and cognitive distance play a role in managing the relationship between headquarter and subsidiaries - What are the potential risks of doing business in a foreign country, and how to mitigate these risks?

Calculate the total cost of the share : On 31 December 20X0, the Chief Executive of BC, a listed company, was awarded the option to purchase 1,000,000 shares in the company at £4.50 a share on 30 June 20X4. This option was subject to her achieving specified performance targets for the t..

How does this complicate the job of dns : How does this complicate the job of DNS? How does this affect the problem of finding your local DNS server?

Recombining binomial tree : Explain what is meant by a recombining binomial tree. State the advantage and disadvantage of using a recombining tree [vis-à-vis a non-recombining tree] to model share price movements?

Discuss how you might rewrite smtp or http : Discuss how you might rewrite SMTP or HTTP

Director pension entitlements for the year : The financial statements of AB, a listed company, disclose the following information on the Chairman's pension entitlements: (a) for the year ended 31 December 20X0 the pension fund is sufficient to pay the director a pension of £200,000 a year fro..

User Account

All Pages