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Employee stock option plan
Accountancy
In illustration 5 in ICAI book.... 1,20,000 is taken to General reserve at the end of 3rd year. Can we do as mentioned below? Instead of taking 1,20,000 to general reserve....and without accounting expense in 3rd year and..... accounting expense of 40,000 in the 4the year.... and accounting 80,000 expense in the 5th year.... Can we do like this? (Computation pic is attached below)
Answers (2)
No. As per the Guidance Note liability created but no longer required with respect to unvested lapsed options has to be credited to General Reserve. https://resource.cdn.icai.org/61670research50201gn-sbp.pdf
