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 2012?
A) $36 667
B) $44 667
C) $46 667
D) $48 000

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 2012?
A) $36 667 
B) $44 667 
C) $46 667 
D) $48 000

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 2012?
A) $36 667 
B) $44 667 
C) $46 667 
D) $48 000

Wigan Ltd Grants 100 Options to Each of Its 80