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Sir, shouldn't the "Compensation expense of the year" be divided by 3, instead of 2, Because its being vested over period of 3 years?

Answers (4)

As a matter of prudence, worst case scenario for company is assumed. So at the end of first year, it is assumed that the vesting condition would be satisfied by the end of second year.

In all other sums excet this one, ICAI have assumed over 3 years and divided by 3. So it will be okay if I apply the same is question is silent about it?

In all other sums excet this one, ICAI have assumed over 3 years and divided by 3. So it will be okay if I apply the same is question is silent about it?

No. Here its not a three year vesting but a conditional vesting. Which could have happened in year 1 or year 2 or year 3.

No. Here its not a three year vesting but a conditional vesting. Which could have happened in year 1 or year 2 or year 3.

Oh ok. Conditional vesting. I will keep that in mind :