On 1 July 2013 Fantasy Ltd granted 200 options to each of its 100 employees. The share options will vest on 30 June 2015 if the employees remain employed with the company on that date. The share options have a life of four years. The exercise price is $5, which is also Fantasy's share price at the grant date. Fantasy is unable to reliably estimate the fair value of the share options at the grant date.
Fantasy's share price and the number of options exercised are set out below. Share options may only be exercised at year end.

The cumulative remuneration expense to be recognised by Fantasy as at 30 June 2015 is:
A) $7800
B) $17 800
C) $35 600
D) $124 600

Question

On 1 July 2013 Fantasy Ltd granted 200 options to each of its 100 employees. The share options will vest on 30 June 2015 if the employees remain employed with the company on that date. The share options have a life of four years. The exercise price is $5, which is also Fantasy's share price at the grant date. Fantasy is unable to reliably estimate the fair value of the share options at the grant date.
Fantasy's share price and the number of options exercised are set out below. Share options may only be exercised at year end.

The cumulative remuneration expense to be recognised by Fantasy as at 30 June 2015 is:
A) $7800 
B) $17 800 
C) $35 600 
D) $124 600

Quizplus · Accepted Answer

The Answer of On 1 July 2013 Fantasy Ltd granted 200 options to each of its 100 employees. The share options will vest on 30 June 2015 if the employees remain employed with the company on that date. The share options have a life of four years. The exercise price is $5, which is also Fantasy's share price at the grant date. Fantasy is unable to reliably estimate the fair value of the share options at the grant date.
Fantasy's share price and the number of options exercised are set out below. Share options may only be exercised at year end.

The cumulative remuneration expense to be recognised by Fantasy as at 30 June 2015 is:
A) $7800 
B) $17 800 
C) $35 600 
D) $124 600

On 1 July 2013 Fantasy Ltd Granted 200 Options to Each