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Bodalla Ltd operates a share option plan for its officers, employees and consultants for up to 10% of its outstanding shares. Under this plan, the exercise price of each option equals the closing market price of the shares on the day before the grant. Each option has a term of 5 years and vests one-third on each of the 3 years following grant date. Before this financial period, Bodalla Ltd has accounted for its share option plan on settlement date and no expense has been recognised.
Required
Question 1: Prepare appropriate memorandum outlining the disclosures that will need to be made in Bodalla Ltd's financial statement following the adoption of AASB 2/IFRS 2.
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