Suppose an Entity Grants 40 Share Options to Each of Its

question 9

Multiple Choice

Suppose an entity grants 40 share options to each of its 100 employees on the condition that they remain in service for 3 years.The employees may choose to exercise their options at the end of year 3,4 or 5.The payment will be in cash based on the value of the option at the exercise date.During the first year 7 employees leave and the company estimate that 13 people will leave in year 2.In fact,6 leave and the company estimate that 8 will leave in year 3.In the third year 10 people leave.At the end of the third year 10 employees exercise their options; and in year 4 a further 20.The remainder exercise their options in the final year.The company estimates the fair value of the options in years 1 - 4 as €20,€22,€28 & €34 respectively.Intrinsic values in years 3 - 5 are estimated as €2,500,€3,000 & €4,000 respectively. What is the remuneration expense in year 2?

• A)€21,333
• B)€25,014
• C)€38,693
• D)€46,347

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Definitions:

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond to the sex they were assigned at birth.

Social Dimensions

Aspects or factors of social life that influence and shape human behavior and interactions, including culture, institutions, and social structures.

Play

Engaging in activities for enjoyment and recreation rather than a serious or practical purpose, especially characteristic of children.

Gender Differences

The distinctions in characteristics, behavior, and roles traditionally associated with being male or female, influenced by social, cultural, and psychological factors.