On Jan. 1, 2020, Luna Company granted 60,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is Php60 and the par value per share is Php50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75 on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were exercised on Dec. 31, 2023.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

*see attached problem

REQUIRED:

What is the share premium upon exercise of the share options on Dec. 31, 2023?

On Jan. 1, 2020, Luna Company granted 60,000 share options to employees.
The share options will vest at the end of three years provided the employees
remain in service until then. The option price is Php60 and the par value per
share is Php50.
At the date of grant, the entity concluded that the fair value of the share
options cannot be measured reliably.
The share options have a life of 4 years which means that the share options
can be exercised within one year after vesting.
The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75
on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were
exercised on Dec. 31, 2023.
Transcribed Image Text:On Jan. 1, 2020, Luna Company granted 60,000 share options to employees. The share options will vest at the end of three years provided the employees remain in service until then. The option price is Php60 and the par value per share is Php50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are Php62 on Dec. 31, 2020, Php66 on Dec. 31, 2021, Php75 on Dec. 31, 2020 and Php85 on Dec. 31, 2023. All share options were exercised on Dec. 31, 2023.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Current liabilities, Provisions and Contingencies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education