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What is the share premium

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Question - On January 1, 2017, Alterra Company granted 60,000 share options to employees. The share options to employees. The share options will vest at the end of three years provided the employees remain in until then. The option price is P60 and the par value per share is P50. At the date of grant, the entity concluded that the fair value of the share options cannot be measured reliably. The share options have a life of 4 years which means that the share options can be exercised within one year after vesting. The share prices are P62 on December 31, 2017, P66 on December 31, 2018, P75 on December 31, 2019 and P85on December 31, 2020. All share options were exercised on December 31, 2020.

1. What is the compensation expense for 2019?

2. What is the compensation expense for 2020?

3. What is the share premium upon exercise of the share options on December 31, 2020?

Reference no: EM132795286

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