Forums
Back
Esop
Accountancy
Vesting period is 3years. On grafe vested investments, why 1year allocation taken as 1/2.
Answers (3)
Best Answer
Thread Starter
Sajan GangadharanSo can we take it as 1/3,if such an assumption is not taken.
Generally in these kinds of scenarios, company expects that it will meet the target by the end of second year itself and transfers the compensation expense to profit and loss account.
Yoga Vishnu
It is assumed that the company meets 13% average earnings at the end of year 2 and the options will be vested at the end of 2nd year.
So can we take it as 1/3,if such an assumption is not taken.
Your Reply