Calculate a fair value for each option on the grant date

Assignment Help Accounting Basics
Reference no: EM131705240

Question: On January 2, Year 1, Argy Company's board of directors granted 12,000 stock options to a select group of senior employees. The requisite service period is three years, with one-third of the options vesting at the end of each calendar year (graded vesting). An option-pricing model was used to calculate a fair value of $5 for each option on the grant date. The company assumes all 12,000 options will vest (i.e., there will be no forfeitures).

Required: Determine the amount to be recognized as compensation expense in Year 1, Year 2, and Year 3 under

(a) IFRS and

(b) U.S. GAAP. Prepare the necessary journal entries.

Reference no: EM131705240

Questions Cloud

Explain the appropriateness of the research design for study : Read, summarize, analyze, and critique the article. Your analysis needs to include a discussion of the appropriateness of the research design for the study.
Wire on the perimeter of a square frame : A coil is wrapped with 104 turns of wire on the perimeter of a square frame of sides 34.9 cm. Each turn has the same area, equal to that of the frame
Determine the hierarchy level for each cost pool : Based on this information, determine the hierarchy level for each cost pool and an appropriate allocation base for each pool
Discuss the fact that most slot machine players rarely win : Without a consistent reward, behavior usually ceases. Given the fact that most slot machine players rarely win
Calculate a fair value for each option on the grant date : On January 2, Year 1, Argy Company's board of directors granted 12,000 stock options to a select group of senior employees.
How agriculture contributed to the rise of civilizations : Some of the impacts that resulted from the emergence of, or ever had, and try new things. This made people be able to sell things in the market.
Describe how managerial accounting and financial accounting : Define Management Accounting and its Purpose and Identify the 3 primary responsibilities of managerial accounting. - Describe how managerial accounting
Average magnitude of the induced emf : Within what period of time must the field be reduced to zero if the average magnitude of the induced emf within the coil during this time interval is to be 4.84
Weight mg points downwards : The drag force on a chickpea falling through olive oil is given by Fdrag = 6p?RvT. It points in the upward direction, while the weight mg points downwards.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd