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 2011?
A) $22,000
B) $23,333
C) $76,000
D) $97,333
E) $146,000

Question

Quizplus · Accepted Answer

In accordance with AASB 2, the employee benefits expense related to the share option issue should be recognized over the vesting period of the options. The fair value of the options granted was $70,000 ($7 per option x 10,000 options) and the vesting period was 3 years. Therefore, the annual expense would be $23,333 ($70,000/3).

In Accordance with AASB 2,how Much Employee Benefits Expense Related