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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?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 7RE: On January 1, 2019, Phoenix Corporation adopts a performance-based share option plan for 25...
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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?
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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