Reference no: EM132933259

In early 20X1 Black Ltd introduced equity settled share-based payments as part of their remuneration policy for employees. On 1 July 20X1, the company announced a grant of 159 share options to each of its 100 employees. The grant is conditional on the employees continuing to work for Black Ltd for 3 years from the announcement date. The fair value of each share option is estimated to be $14.

Details of the employee movements over the period covered by the grant of options are as follows:

1. During the year ended 30 June 20X2, 5 employees left the company. At 30 June 20X2 it was estimated that a total of 7 employees would leave the company during the period 1 July 20X2 to 30 June 20X4.
2. During the year ended 30 June 20X3, 6 employees left the company. At 30 June 20X3 it was estimated that a further 6 employees would leave the company during the year ended 30 June 20X4. Required:

Problem 1: Calculate the total Cumulative Remuneration Expense for services rendered as consideration for the share options granted that would be recognised by Black Ltd at 30 June 20X3 in accordance with the requirements of AASB 2: Share Based Payments. Do not include any spaces, commas, dollar signs or decimals in your answer.