On January 1^st,20x9,GHI Inc.granted options to its twenty employees allowing for the purchase of 12,000 shares at $5 per share.The options vest evenly over the 3 years following the date of issue.The options are only exercisable as of December 31^st,20x11.The fair value of these options (using an Option Pricing model)is $30,000.
Part A: Assume that all options have vested but that none were exercised on December 31^st,20x11.Provide the required journal entry.
Part B: Assume that all options have vested and all were exercised on December 31^st,20x11.Provide the required journal entry.
Part C: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below: Provide the required journal entries to record the accrual of compensation expense and the exercise of the options as per IFRS.
Part D: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below:

Question

On January 1^st,20x9,GHI Inc.granted options to its twenty employees allowing for the purchase of 12,000 shares at $5 per share.The options vest evenly over the 3 years following the date of issue.The options are only exercisable as of December 31^st,20x11.The fair value of these options (using an Option Pricing model)is $30,000.
Part A: Assume that all options have vested but that none were exercised on December 31^st,20x11.Provide the required journal entry.
Part B: Assume that all options have vested and all were exercised on December 31^st,20x11.Provide the required journal entry.
Part C: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below:

On January 1<sup>st</sup>,20x9,GHI Inc.granted options to its twenty employees allowing for the purchase of 12,000 shares at $5 per share.The options vest evenly over the 3 years following the date of issue.The options are only exercisable as of December 31<sup>st</sup>,20x11.The fair value of these options (using an Option Pricing model)is $30,000. Part A: Assume that all options have vested but that none were exercised on December 31<sup>st</sup>,20x11.Provide the required journal entry. Part B: Assume that all options have vested and all were exercised on December 31<sup>st</sup>,20x11.Provide the required journal entry. Part C: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below: Provide the required journal entries to record the accrual of compensation expense and the exercise of the options as per IFRS. Part D: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below:

Provide the required journal entries to record the accrual of compensation expense and the exercise of the options as per IFRS.
Part D: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below:

Quizplus · Accepted Answer

The Answer of On January 1^st,20x9,GHI Inc.granted options to its twenty employees allowing for the purchase of 12,000 shares at $5 per share.The options vest evenly over the 3 years following the date of issue.The options are only exercisable as of December 31^st,20x11.The fair value of these options (using an Option Pricing model)is $30,000. Part A: Assume that all options have vested but that none were exercised on December 31^st,20x11.Provide the required journal entry. Part B: Assume that all options have vested and all were exercised on December 31^st,20x11.Provide the required journal entry. Part C: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below: Provide the required journal entries to record the accrual of compensation expense and the exercise of the options as per IFRS. Part D: Suppose that some of the options were forfeited by the employees.Actual and estimated forfeiture data are provided in the table below:

On January 1st,20x9,GHI Inc

On January 1^st,20x9,GHI Inc