On 1.1.2016 the management of ANDY Bhd granted its 100 employees in the production units options to buy 100 shares each. If production increased by a minimum of 10%, the options granted would increase by 10% and if the production increased by 20% or more the options granted would increase by 20%. The options would vest at the end of the third year. In 2016, the company estimated that production would not increase and that ten employees would leave before the end of year 2018. In year 2017, five employees left and the company estimated that productivity would increase by 15% only and only 75 employees would remain in service till end of year 2018. In year 2018, productivity rose by 22% and another seven employees left the company. The fair value of the option was RM10 on 1.1.2016. Required: Calculate the amount recognised as expenses and amount disclosed as equity.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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BP22603 FINANCIAL ACCOUNTING AND REPORTING III
SEM 2, 2021/2022
QUESTION 3
On 1.1.2016 the management of ANDY Bhd granted its 100 employees in the production units
options to buy 100 shares each. If production increased by a minimum of 10%, the options
granted would increase by 10% and if the production increased by 20% or more the options
granted would increase by 20%. The options would vest at the end of the third year.
In 2016, the company estimated that production would not increase and that ten employees
would leave before the end of year 2018. In year 2017, five employees left and the company
estimated that productivity would increase by 15% only and only 75 employees would remain
in service till end of year 2018.
In year 2018, productivity rose by 22% and another seven employees left the company. The
fair value of the option was RM10 on 1.1.2016.
Required:
Calculate the amount recognised as expenses and amount disclosed as equity.
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Transcribed Image Text:← = PDF TUTORIAL QUESTION 4.pdf C 2 of 3 Q 5 X PDF Topic 4 Employee Benefits.pdf x | + Ⓒ File | C:/Users/acer/Documents/UNIVERSITI%20MALAYSIA%20SABAH/SEMESTER%204%20COURSE/BP22603%20FAR%20111/CHAP... Q โค + Q CD Page view | A Read aloud | □ Add textDraw Erase Highlight 1|2 BP22603 FINANCIAL ACCOUNTING AND REPORTING III SEM 2, 2021/2022 QUESTION 3 On 1.1.2016 the management of ANDY Bhd granted its 100 employees in the production units options to buy 100 shares each. If production increased by a minimum of 10%, the options granted would increase by 10% and if the production increased by 20% or more the options granted would increase by 20%. The options would vest at the end of the third year. In 2016, the company estimated that production would not increase and that ten employees would leave before the end of year 2018. In year 2017, five employees left and the company estimated that productivity would increase by 15% only and only 75 employees would remain in service till end of year 2018. In year 2018, productivity rose by 22% and another seven employees left the company. The fair value of the option was RM10 on 1.1.2016. Required: Calculate the amount recognised as expenses and amount disclosed as equity. { re اد t 60 I ח
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