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Why did they use different methods for calculating amount to be transferred general reserve Account? Illustration 2 and 5
Answers (6)
In Illustration 2 : There are 700 Vested options in which only 600 options are exercised. So the excess incurred expenses should be transferred to General Reserve. Emp Com Exp = 84000 (700x120) Exercised Options = 72000 (600x120) Excess of Rs.12000 should be transferred to General Reserve. In Illustration 5 : Out of 4000 Vested options only 3000 options are exercised and 1000 options lapsed. So the extra expenses incurred for 1000 lapsed options should be transferred to General Reserve. Excess = Rs.90000 (1000x90)
Karthick A
In Illustration 2 : There are 700 Vested options in which only 600 options are exercised. So the excess incurred expenses should be transferred to General Reserve. Emp Com Exp = 84000 (700x120) Exercised Options = 72000 (600x120) Excess of Rs.12000 should be transferred to General Reserve. In Illustration 5 : Out of 4000 Vested options only 3000 options are exercised and 1000 options lapsed. So the extra expenses incurred for 1000 lapsed options should be transferred to General Reserve. Excess = Rs.90000 (1000x90)
Plz look into wn 1 of illustration 2 and wn 2 of illustration 5
Thread Starter
Nirmal PaulyPlz look into wn 1 of illustration 2 and wn 2 of illustration 5
I am sorry, I can't see now. I will reply soon
Thread Starter
Nirmal PaulyPlz look into wn 1 of illustration 2 and wn 2 of illustration 5
Can you explain what you're not understanding ? If possible, better watch these sums again.
