share based payment

Dear Sir,

I have a small doubt in this pilot paper Dipifr 2010 (Ifrs 2) question:

On 1 October 2010 Omega granted 250,000 options that allowed employees to purchase shares for $10 per share. The options are to vest on 30 June 2011 provided the employees satisfy certain performance conditions in the 9-month period between 1 October 2010 and 30 June 2011. The market value of the shares on 1 October 2010 was only $10, although by 30 June 2011 the market value was expected to rise to $12.
The fair value of each share option was estimated to be $1.80 per share at 1 October 2010. This estimate had increased to $1.90 per share by 31 March 2011
On 1 October 2010 it was anticipated that all the options would vest. However employee performance in the period since 1 October 2010 has been such that it is now likely that only 200,000 of the options will vest.

I calculated correctly as follows:
Total liability: 200000 * 1.80 = 3,60,000
P/L (remuneration cost) = 2,00,000* 1.8 * 6/9 months = 2,40,000

Now,
Could you pls tell me what will be the journal entry for yr ending Mar 2011?
How much would be the amount on the credit side?
Debit: P/L 240000
Credit: increase in equity reserves?

Just a little confused as this involves 6 & 9 month thing, unlike other questions..

Thanks,

Swati.

And the amount would be ‘240000’ in the “Other components of equity”?
If yes, then, what will we do of ‘90,000’ in the current yr ending Mar 2011?

I am sorry, its not 90,000. Its 120,000 (360,000-240,000).
How will this amount be treated in current pd? Or it won’t be accounted for in yr ending 31 Mar 2011.

Total liability: 200,000 * 1.80 = 3,60,000
P/L (remuneration cost) = 2,00,000* 1.8 * 6/9 months = 2,40,000

Alright,
Thanks a lot.

Regards..
swati