Ashleigh, a public limited company, has granted share options to its employees with a fair value of $6 million. The options vest in three years’ time. The Monte Carlo model was used to value the options, and these estimates had been made:
• Grant date (January 1, 20X4): estimate of employees leaving the entity during the vesting period—5%
• January 1, 20X5: revision of estimate of employees leaving to 6% before vesting date
• December 31, 20X6: actual employees leaving 5%
A. What would be the expense charged in the income statement in Year to December 31, 20X4?
(a) $6 million.
(b) $2 million.
(c) $1.90 million.
(d) $5.70 million.
B. Year to December 31, 20X5?
(a) $1.90 million.
(b) $1.88 million.
(c) $2 million.
(d) $3.78 million. million)
C. Year to December 31, 20X6?
(a) $1.90 million.
(b) $1.88 million.
(c) $2 million.
(d) $1.92 million.