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Employee Stock Option Plan
Accountancy
Can someone pls explain the Illustration 6 of 'Accounting for Employee Stock Option' chapter.
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Thread Starter
Rama Sesha GopalSir, the avg. earnings of the Co. has not matched the required earnings %. Then, how is it correct to assume that vesting period is 2 yrs. @year 1 and as 3 years @year 2, because the average earnings of year 1 and year 2 are not matching required %?
You need to take the most prudent approach. If in year 1 it is not met, we assume it would be done in year 2.
CA Suraj Lakhotia Admin
What is the doubt?
Sir, the avg. earnings of the Co. has not matched the required earnings %. Then, how is it correct to assume that vesting period is 2 yrs. @year 1 and as 3 years @year 2, because the average earnings of year 1 and year 2 are not matching required %?
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