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What amount should be recognized as compensation expense

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Question - DALMI Corporation granted 30,000 share options to a senior executive on January 1, 2017, conditional upon the executive remaining in the entity's employ until December 31, 2019.The par value per share is P50, and the exercise price is P100. However, the exercise price drops to 80% if the entity's earnings increase by at least an average of 10% per year over the three-year period. On grant date, the entity estimated that the fair value of the share option is P30 if the exercise price is P80. If the exercise price is P100, the fair value of the share option is P25.During 2017 and 2018, the earnings increased by 11% and 12%, respectively. However, during 2019, the earnings increased only by 4%. All share options were exercised on December 31, 2019. What amount should be recognized as compensation expense in 2019?

Reference no: EM132938075

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