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Esop options invested

Accountancy

By this accounting Since from 2yrs we are reconginzing & showing employee stock option outstanding acc in shareholder funds under reserves n surplus more (i.e, for 1000 shares)and after options invested excess recongized is transfer to general reserve (300shares ) so that liabilities are reconging for more value in 1st 2 yrs ..is it true n fair view recongizition and measurement..

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prasad B

prasad B

CA Final

3K+

29-Sep-22 18:50

568

Answers (4)

Best Answer

There are two ways 1. To transfer at the end of vesting period - Preferred approach. 2. Transfer in the interim as done in this question.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

30-Sep-22 15:57

And also y there is no transferring to pand l account entry ..y it is reconginzed to employee stock option outstanding account instead of employee compensation account as like in earlier year entries ?!


Thread Starter

prasad B

prasad B

CA Final

3K+

29-Sep-22 19:09

Tq sir and what is the difference between that question and this question..there also 300 vested options lapesed here 4000 vested options lapesed ..then y there is employee compensation recognition entry in lapsing yr in later question ..y it is not there in previous image question ..is that difference due to lapsing date

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Thread Starter

prasad B

prasad B

CA Final

3K+

30-Sep-22 21:36

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