MQ5 - SHARE BASED COMPENSATION.docx

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1 to 3 Share options are example of 1)________ share based compensation. They are actually 2)________ which are considered as additional compensation to key employees because 3)________. 4 to 5 Under the fair value method, the basis for measurement of the compensation is the 4)_______ or the intrinsic value which is the 5)_________ 6 to 14 is based on the following On Dec. 31 2011, ABC Corp granted share options to executives for the purchase of 10,000, -P- 100 par value shares at –P- 120 per share. The corresponding fair value is as follows. Dec 31,2011 Dec 31,2012 Dec 31, 2013 Share Option -P- 10 -P- 12 -P- 15 Ordinary Share 132 146 160 6. Give the entry on Dec. 31, 2011 if the share options are exercisable immediately. 7. Refer to no. 6. Give the journal entry on Jan. 1, 2012 to record the exercise of the share options. 8. Give the journal entry on Dec. 31, 2011 if the share options can be exercised only by key executives who will remain employ of ABC Corp. up to Dec. 31, 2013 9. Refer to no. 8. Give the journal entry to record the exercise of the share options on Jan. 1, 2014.
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