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An entity has a reporting date of 31 December.
On 1 January 20X1 it grants 100 share options to each of its 500
employees. Each grant is conditional upon the employee working for
the entity until 31 December 20X3. At the grant date the fair value of
each share option is $15.
During 20X1, 20 employees leave and the entity estimates that a total
of 20% of the 500 employees will leave during the three-year period.
During 20X2, a further 20 employees leave and the entity now
estimates that only 15% of the original 500 employees will leave during
the three-year period.
During 20X3, a further 10 employees leave.
Calculate the remuneration expense that will be recognised in
each of the three years of the share-based payment scheme.
I didn’t understand why they just removed 20%=100 employee n what about the 20 employee in 20X1 …
Then again in 20X2 15% n ignore the 20 employee…
Then 20×2 they took both 20+20+10 …plz explain am confused ?
You are trying to ESTIMATE the TOTAL number of employees that will be in place at the end of the scheme, NOT the number who have left to date.
I think you may have misread the question.
So, at the end of Year 1, my estimate would be 500 minus 20% of 500.