How much is the actual balance of share options outstanding

Assignment Help Financial Accounting

Reference no: EM132846707

Question - On January 1, 2020, MCS Co. granted share options to each of their 100 employees. The share option will vest (can be exercised) at the end of 2022, provided that employees are still employed with the company and provided that the sales performance of the company increases at an average of at least 5% per year for the three year period.

If sales increase by an average of at least 5% employees shall receive 100 share options. Should the increase be an average of at least 10% employees shall receive 200 share options each. Should the increase be more than 15%, employees shall receive 300 share options.

By the end of 2020, 5 of the employees entitled to the share option program have already resigned. The company has no forecast of additional employees who may resign in the next 2 years.

By the end of 2021, only 93 employees remain with the company and they are expecting that 6 more will not complete the service required for the share option entitlement.

By the end of 2022, there are only 85 employees entitled to the share option program.

Fair value of the share option is P25 in January 1, 2020 and P35 in December 31, 2022 Option price is P75 per share, par value us P50 per share.

At the end of 2022, 75 employees exercised 80% of their share options, the remaining 10 employees exercised their share options in full in 2023.

The Unexercised share option expired by the end of 2023

Market price of the share was P120 on 2022 and P130 in 2023

Required -

1) How much is the compensation expense recorded in 2020?

2) How much is the compensation expense recorded in 2021?

3) How much is the compensation expense recorded in 2022?

4) How much is the total amount charged to salaried from 2020 to 2022?

5) How much is the actual balance of share options outstanding right before the exercise of the options by the qualified employees?

6) How much cash was received by the company in 2022 from the exercise of the share options?

7) How much was credited to Share capital in 2022 from the exercise of the options?

8) How much total Share capital was credited from the exercised options of all the qualified employees?

9) How much is the total share premium brought about by all share options related transactions?

10) How many share options were unexercised and expired?

Reference no: EM132846707

Questions Cloud

Write about why stakeholders will be interested : Write 2 paragraphs why stakeholders will be interested or remain with a company based on CULULATIVE PROFITS.

What would be the amount of revenues reported : During the year, the County incurred $400,000 of qualifying eligible grant expenditures, What would be the amount of revenues reported

Explain how would weigh the pros and cons of the policy : Explain how you would weigh the pros and cons of this policy. In hindsight, what is your view of NAFTA? Is globalization good?

Explain what was the initial theory about deane death : Who is Julian Boyd, and what is his theory about Deane's death? What was the initial theory about Deane's death? What facts supported that theory?

How much is the actual balance of share options outstanding : How much is the actual balance of share options outstanding right before the exercise of the options by the qualified employees

How did living in urban areas reshape people social lives : Considering that creating a strong union movement in the United States so difficult, What benefits were accrued? What challenges did they face?

Explain which event reminds most of an event in life-time : When Europeans began uprooting and immigrating to this part of the world during the 1600s, was it a settlement or an invasion?

Explain the impact of the civil war then and now : Explain the impact of the Civil War then and now. Provide specific details and one outside source (citation required) to back up your answer.

How changes in economic conditions and technology can cause : How changes in social and economic conditions and technology can cause corresponding changes in the attitudes of the people and policies of the government.

User Account

All Pages