Reference no: EM132765813

Problem 1: An entity has granted share options to its employees. The total expense to the vesting date of December 31, 20X6, has been calculated as ?18 million. The entity has decided to settle the award early, on December 31, 20X5. The expense charged in the income statement since the grant date of January 1, 20X3, had been year to December 31, 20X3, ?5 million, and year to December 31, 20X4, ?5 million. The expense that would have been charged in the year to December 31, 20X5, was ?2.2 million. What would be the expense charged in the income statement for the year December 31, 20X5?

a) 2.2 million.
b) 8 million.
c) 3.9 million.
d) 2 million.