Ribby, Hall and Zain (Foreign currency) – Bonus to employees of Ribby note 5

Home Forums Ask ACCA Tutor Forums Ask the Tutor ACCA P2 Exams Ribby, Hall and Zain (Foreign currency) – Bonus to employees of Ribby note 5

This topic contains 3 replies, has 2 voices, and was last updated by Profile photo of MikeLittle MikeLittle 4 years, 7 months ago.

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts

  • avatar
    aseeseea
    Member

    Hi there – Could you please explain me why should management recognise an expense of (2/3×90%x$3m)= $1.8m, with a corresponding increase in equity?

    I was try to get my head around 2/3 but could not figure out why should we take 2/3 with reference to the note (V)in the question?

    Answers are welcome.

    Many thanks


    Profile photo of MikeLittle
    MikeLittle
    Keymaster

    June ’07 to May ’08 is 12 months. the vesting date is a further 6 months on ( November ’08 ) So at May ’08, 2/3 of the period has passed and that’s why the calculation is 2/3 x 90% x 3million


    avatar
    aseeseea
    Member

    Many thanks Mike.


    Profile photo of MikeLittle
    MikeLittle
    Keymaster

    welcome

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.