Eugene Company decided to issue 1,000 share options to an employee in lieu of many years' service. However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable entities. The exercise price is Php100 per share and the options were granted at the beginning of current year, when the value of the shares was also estimated at Php100 per share. At the end of the current financial year, the value of the shares was estimated at Php150 per share and the options vested on that date.

Eugene Company decided to issue 1,000 share options to an employee in lieu of many years' service. However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable entities. The exercise price is Php100 per share and the options were granted at the beginning of current year, when the value of the shares was also estimated at Php100 per share. At the end of the current financial year, the value of the shares was estimated at Php150 per share and the options vested on that date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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