- 6 Marks
CR – July 2023 – L3 – Q2B – IFRS 2: Share-Based Payments
Account for the share-based payment scheme under IFRS 2 and prepare relevant extracts for profit or loss and statement of financial position.
Question
On 1 April 2020, each of the seven (7) directors of Jantua Ltd received 16,000 share options as an award. Jantua Ltd prepares its accounts to 31 March each year. The condition attached to the award is that the directors must remain employed by Jantua Ltd for three years. The fair value of each option at the grant date was GH¢100 and the fair value of each option at 31 March 2022 was GH¢110. At 31 March 2021, it was estimated that two (2) directors would leave before the end of three years. Due to an economic upturn, the estimate of directors who were going to leave was revised to one (1) director at 31 March 2022. The expense for the year as regards the share options had not been included in profit or loss for the current year, and no director had left by 31 March 2022.
Required:
With reference to International Financial Reporting Standards, advise the directors on how to account for the above transactions of Jantua Ltd in its financial statements as at 31 March 2022.
(6 marks)
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