alleryStart learning →A 3-year plan worth Rs 900,000 is cancelled after year 1 (Rs 300,000 booked). Expense on cancellation?
ARs 300,000
BRs 450,000
CRs 900,000
DRs 600,000
Answer & Solution
Correct answer: D. Rs 600,000
Cancellation accelerates vesting, so the remaining 900,000 minus 300,000 = Rs 600,000 is recognised immediately.
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Related questions
2,000 SARs vest immediately with fair value Rs 35 each. Liability recognised at once isRs 200,000 was booked over 2 years, then a non-market profit target fails. Net cumulative 10 staff get 1,000 options each, FV Rs 25 with a 5-year share price target. Annual charge Total expected cost of a 4-year equity-settled plan is Rs 480,000 with no forfeitures. YeaSame SARs, year 2: 48 staff vest, fair value Rs 18, liability so far Rs 175,000. Year 2 ex50 staff hold 500 SARs each, 2-year vesting. SAR fair value is Rs 14 at end of year 1. YeaRepricing lifts fair value of 1,000 options from Rs 8 to Rs 11. Incremental fair value is1,000 vested options bought back at Rs 80 each when fair value is Rs 70. Expense recognise