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DF granted 1000 share options to each of its 300 employees on 1 January 20X0, with the condition that they continue to work for DF for 4 years from the grant date. The fair value of each option at the grant date was $5.
Twenty employees left in the year to 31 December 20X0 and at that date another 65 were expected to leave over the next three years. 23 employees left in the year to 31 December 20X1 and at that date another 44 were expected to leave over the next two years.
Calculate the charge to DF's income statement for the year ended 31 December 2011 in respect of the share options and prepare the journal entry to record this.