How much is the compensation expense for the year ended

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Question - On January 2, 2019, ABC Corporation granted 150 share options to each of its 250 employees. The option plan allows the employees to purchase a share of the entities P100 par value ordinary shares at P110. On January 2, 2019, the fair value of each option was P25 and market value of each share is P110. The option plan requires the employees receiving the options to be in the employ of the company at least until December 31, 2021. Options are exercisable in 2022.

Actual and revised estimates of employees leaving the company during 2019, 2020 and 2021 are as follows:

2019 15 employees left, 20 more employees are expected to leave before December 31, 2021.

2020 10 employees left, 15 more employees are expected to leave before December 31, 2021.

2021 5 employees left

75% of the options were exercised in 2022 and the remaining options expired by the end of 2022.

1) How much is the compensation expense for the year ended December 31, 2020?

2) How much is the balance of Paid-in capital from unexercised options on December 31, 2022?

3) How much is to be credited to Ordinary Share Capital upon exercise of the options?

Reference no: EM132544673

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