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CFA Level 2 - Derivatives
Intermediate
1/45
Johnson Incorporated grants 1,000 share options to its CFO on January 1, 2022. The options have a grant-date fair value of $20 per option and vest after three years of service. The CFO is still employed on December 31, 2022. What is the compensation expense Johnson should recognize for the share-based payment in 2022 under IFRS 2?
a.
Johnson should wait until the end of the three-year vesting period to recognize any compensation expense associated with the share options.
b.
Johnson should recognize the full grant-date fair value of $20,000 as compensation expense in 2022, as the options were granted in that year.
c.
Johnson should recognize a compensation expense of $6,667 for the share-based payment in 2022.
Intermediate