What is the equity component on January

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Question - On January I 2020r KBS Company granted to employees a share-based payment with cash and share alternative. The conditions include the right to a cash payment equal to the value of 10,000 phantom shares or 15,000 ordinary shares with a par value of P40. The grant is conditional upon the completion of three years after the vesting date. At grant date, the share price is P60. At the end of 2020 and 2021 and 2022 the share prices are P63, P66, and P72 respectively.

After taking into account the effect of vesting restrictions, the entity estimated that the fair value of the share alternative on the grant date is P45. On January 1, 2023, the employees selected the share alternative.

Required -

1) What is the equity component on January 1, 2020 arising from the share-based payment with cash and share alternative?

2) What is the compensation expense for 2022?

3) What amount of share premium should he recorded from the issuance of shares on January 1, 2023?

Reference no: EM133127070

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