Exam 14: Share-Based Payment

Which of the following statements in relation to disclosures required under AASB 2 Share-based Payment is not correct?

On 1 July 2013 Fantasy Ltd granted 200 options to each of its 100 employees. The share options will vest on 30 June 2015 if the employees remain employed with the company on that date. The share options have a life of four years. The exercise price is $5, which is also Fantasy's share price at the grant date. Fantasy is unable to reliably estimate the fair value of the share options at the grant date. Fantasy's share price and the number of options exercised are set out below. Share options may only be exercised at year end. The formula to calculate the remuneration expense for the year ended 30 June 2016 is:

On 1 July 2013 Poggio Ltd grants 300 options to each of its 100 employees conditional on the employee remaining in service over the next three years. The fair value of each option is estimated to be $12. Poggio estimates that 15 employees will leave over the three year vesting period. By 30 June 2014 four employees have left and the entity estimates that a further ten employees will leave over the next two years. On 30 June 2014 Poggio decided to reprice its share options, due to a fall in its share price over the last 12 months. The repriced share options will vest on 30 June 2016. At the date of repricing Poggio estimates that the fair value of each original option is $3 and the fair value of each repriced option is $5. During the year ended 30 June 2015 a further 6 employees leave and Poggio estimates that another 3 employees will leave during the year ended 30 June 2016. During the year ended 30 June 2016 four employees left. The entry at 30 June 2015 to account for the share based payment transaction is:

On 1 July 2013, Diamond Ltd granted 800 share options with an exercise price of $35 to the CFO, conditional on the CFO remaining in employment with the company until 30 June 2016. The exercise price will drop to $30 if Diamond's earnings increase by an average of 8% per year over the three year period. On 1 July 2013 the estimated fair value of the share options with an exercise price of $35 is $10 per option, and if the exercise price is $30, the estimated fair value of the options is $12 per option. During the year ended 30 June 2014 Diamond's earnings increased by 10% and they are expected to continue to increase at this rate over the next two years. During the year ended 30 June 2015 Diamond's earnings increased by 5% and Diamond management expected that the earnings target would be achieved. During the year ended 30 June 2016 Diamond's earnings increased by 11%. When calculating the remuneration expense to be recognised for the year ended 30 June 2015 which of the following dollar values should be included in the calculation?