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

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

  • This topic has 3 replies, 2 voices, and was last updated 14 years ago by MikeLittle.
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  • November 9, 2010 at 10:52 am #45854
    aseeseea
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    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

    November 9, 2010 at 9:27 pm #70327
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    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

    November 9, 2010 at 10:42 pm #70328
    aseeseea
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    Many thanks Mike.

    November 10, 2010 at 1:43 pm #70329
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    welcome

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