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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Ribby, Hall and Zain (Foreign currency) – Bonus to employees of Ribby note 5
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
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
Many thanks Mike.
welcome