The Following Information Relates to Questions
on 1 July

question 29

Multiple Choice

The following information relates to questions
On 1 July 2013 Fantasy Ltd granted 200 options to each of its 100 employees. The share options will vest on 30 June 2015 if the employees remain employed with the company on that date. The share options have a life of four years. The exercise price is $5, which is also Fantasy's share price at the grant date. Fantasy is unable to reliably estimate the fair value of the share options at the grant date.
Fantasy's share price and the number of options exercised are set out below. Share options may only be exercised at year end.
$$\begin{array} { | l | l | l | } \hline \text { Year ended } & \begin{array} { l } \text { Share price } \\\text { at year end }\end{array} & \begin{array} { l } \text { Number of aptions } \\\text { exercised at year end }\end{array} \\\hline \text { 30 June } 2014 & \$ 6 & - \\\hline \text { 30 June } 2015 & \$ 7 & - \\\hline \text { 30 June } 2016 & \$ 8 & 7,800 \\\hline \text { 30 June } 2017 & \$ 9 & 10,000\\\hline\end{array}$$
-The formula to calculate the remuneration expense for the year ended 30 June 2016 is:

• A) 7800 x ($8-$7)
• B) 7800 x $8
• C) (7800 + 10 000) x ($8-$5)
• D) (7800 + 10 000) x ($8-$7)

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Definitions:

Manager

An individual responsible for controlling or administering an organization or group of staff, focusing on planning, executing strategies, and overseeing operations.

Work Team's Performance

The measure of efficiency and effectiveness with which a group of individuals achieves its collective goals and objectives.

Cohesiveness

The degree to which members are attracted to and motivated to remain part of a team.

Norms

Shared expectations or rules that guide behavior in a group, organization, or society.