On January 1, 2020, Jangga Group grants share options to each of its 100 employees working in the sales department. Each a these employees receives 10 share options. The share options will vest on December 31, 2022, provided that the employeer remain in the entity's employ. On January 1, 2021, fair value per option is P30. On December 31, 2020, it is expected that during the whole vesting period of three years, 10% of the employees will leave Jangg Group. On December 31, 2021, this expectation is revise to 30%. Finally, by December 31, 2020, 20% of the employees le Jangga Group. There is also a performance condition in addition to the service condition. According to the performance condition, the options on vest if Jangga Group's share price on December 31, 2022 exceeds its share price on January 1, 2020 by at least 20%. C December 31, 2020 and on December 31, 2021, it is expected that this target will be met. However, the target is not met December 31, 2022. Based on the preceding information, answer the following: 1. What amount of compensation expense should be recognized on December 31, 2020? 2. What amount of compensation expense should be recognized on December 31, 2021? 3. What amount of compensation expense should be recognized on December 31, 2022?
On January 1, 2020, Jangga Group grants share options to each of its 100 employees working in the sales department. Each a these employees receives 10 share options. The share options will vest on December 31, 2022, provided that the employeer remain in the entity's employ. On January 1, 2021, fair value per option is P30. On December 31, 2020, it is expected that during the whole vesting period of three years, 10% of the employees will leave Jangg Group. On December 31, 2021, this expectation is revise to 30%. Finally, by December 31, 2020, 20% of the employees le Jangga Group. There is also a performance condition in addition to the service condition. According to the performance condition, the options on vest if Jangga Group's share price on December 31, 2022 exceeds its share price on January 1, 2020 by at least 20%. C December 31, 2020 and on December 31, 2021, it is expected that this target will be met. However, the target is not met December 31, 2022. Based on the preceding information, answer the following: 1. What amount of compensation expense should be recognized on December 31, 2020? 2. What amount of compensation expense should be recognized on December 31, 2021? 3. What amount of compensation expense should be recognized on December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2020, Jangga Group grants share options to each of its 100 employees working in the sales department. Each of
these employees receives 10 share options. The share options will vest on December 31, 2022, provided that the employees
remain in the entity's employ. On January 1, 2021, fair value per option is P30.
On December 31, 2020, it is expected that during the whole vesting period of three years, 10% of the employees will leave Jangga
Group. On December 31, 2021, this expectation is revise to 30%. Finally, by December 31, 2020, 20% of the employees left
Jangga Group.
There is also a performance condition in addition to the service condition. According to the performance condition, the options only
vest if Jangga Group's share price on December 31, 2022 exceeds its share price on January 1, 2020 by at least 20%. On
December 31, 2020 and on December 31, 2021, it is expected that this target will be met. However, the target is not met by
December 31, 2022.
Based on the preceding information, answer the following:
1. What amount of compensation expense should be recognized on December 31, 2020?
2. What amount of compensation expense should be recognized on December 31, 2021?
3. What amount of compensation expense should be recognized on December 31, 2022?
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