What is the total compensation expense

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Question - On January 1, 2017, Company One's Board of Directors approved granting 5,000 stock options to a select group of senior employees. The requisite service period is five years with 20% of the options vesting each year from 2017 to 2021. The fair value of the option is as below:

Jan 1, 2017 $20

Dec 31, 2017 $21

Dec 31, 2018 $22

Dec 31, 2019 $23

Dec 31, 2020 $24

Dec 31, 2021 $25

Instruction:

a) Based on the description in question, determine the type of vesting condition (cliff vs. graded).

b) What is the total compensation expense needed to be recognized under US GAAP for each year from 2017 to 2021?

c) What is the total compensation expense needed to be recognized under IFRS for each year from 2017 to 2021 (round to one decimal point)?

Reference no: EM132432102

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