Solution-Calculate a fair value for each option on the

Calculate a fair value for each option on the grant date

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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

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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.

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Calculate a fair value for each option on the grant date

Reference no: EM131705240

Reference no: EM131705240

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