Wigan Ltd grants 100 options to each of its 80 employees on 1 July 2009.The fair value of each option at grant date is $20.The vesting conditions allow shares to vest if the following performance targets are achieved:
$$\begin{array} { | l | l | }
\hline \text { Year ending } 30 \text { June } & { \text { Condition } } \
\hline 2010 & \text { If earnings have increased by } 18 \% \
\hline 2011 & \begin{array} { l }
\text { If earnings have increased by } 13 \% \text { averaged across } \
\text { the 2 year period }
\end{array} \
\hline 2012 & \begin{array} { l }
\text { If earnings have increased by at least } 10 \% \text { averaged } \
\text { across the 3 year period }
\end{array} \
\hline
\end{array}$$
The following information is available:

In accordance with AASB 2,how much employee benefits expense related to the share option issue should Wigan Ltd recognise for the year ended 30 June 2010?

Question

Wigan Ltd grants 100 options to each of its 80 employees on 1 July 2009.The fair value of each option at grant date is $20.The vesting conditions allow shares to vest if the following performance targets are achieved:
$$\begin{array} { | l | l | } 
\hline \text { Year ending } 30 \text { June } & { \text { Condition } } \
\hline 2010 & \text { If earnings have increased by } > 18 \% \
\hline 2011 & \begin{array} { l } 
\text { If earnings have increased by } > 13 \% \text { averaged across } \
\text { the 2 year period }
\end{array} \
\hline 2012 & \begin{array} { l } 
\text { If earnings have increased by at least } 10 \% \text { averaged } \
\text { across the 3 year period }
\end{array} \
\hline
\end{array}$$ 
The following information is available:

In accordance with AASB 2,how much employee benefits expense related to the share option issue should Wigan Ltd recognise for the year ended 30 June 2010?

Quizplus · Accepted Answer

The Answer of Wigan Ltd grants 100 options to each of its 80 employees on 1 July 2009.The fair value of each option at grant date is $20.The vesting conditions allow shares to vest if the following performance targets are achieved:
$$\begin{array} { | l | l | } 
\hline \text { Year ending } 30 \text { June } & { \text { Condition } } \
\hline 2010 & \text { If earnings have increased by } > 18 \% \
\hline 2011 & \begin{array} { l } 
\text { If earnings have increased by } > 13 \% \text { averaged across } \
\text { the 2 year period }
\end{array} \
\hline 2012 & \begin{array} { l } 
\text { If earnings have increased by at least } 10 \% \text { averaged } \
\text { across the 3 year period }
\end{array} \
\hline
\end{array}$$ 
The following information is available:

In accordance with AASB 2,how much employee benefits expense related to the share option issue should Wigan Ltd recognise for the year ended 30 June 2010?

Wigan Ltd Grants 100 Options to Each of Its 80