Entry to record transaction at the end

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Point 1: On December 31, 2018, Parlamet Company issued 2,000 share options to each of the five key executives that will vest once revenues reach P100 million a year until December 31, 2021. The option expire on January 1, 2022. The employee must still be in the employ of the company at the time the share options vest. Based on the pricing model used by Pau Company, the market value of the option on the date of grant is P30.

Point 2: At the end of 2019, it is expected that none of the executives who have been granted the share options will leave the company until 2022. It is also estimated that revenue of P100 million will be reached by the year 2021.

Required:

Question a. Entry to record transaction at the end of 2021.

Reference no: EM132506014

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