- This topic has 2 replies, 3 voices, and was last updated 4 hours ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
An entity issues fully paid shares to 200 employees on December 31, 20X4. Normally shares issued to employees vest over a two-year period, but these shares have been given as a bonus to the employees because of their exceptional performance during the year. The shares have a market value of $500,000 on December 31, 20X4, and an average fair value for the year of $600,000. What amount would be expensed in the income statement for the above share-based payment transaction?
The answer my tutor gave me was $500,000 but I don’t understand why it wouldn’t be $600,000 or a different result. Thank you for your help!Share based payments are not on the FR syllabus, so I’d suggest you post this query on the SBR page where it is part of the syllabus.
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.