On 1 July 2012 Lancaster Ltd Grants 100 Share Options

On 1 July 2012 Lancaster Ltd grants 100 share options to each of its 50 employees conditional upon the employee working for the entity for the next 3 years.The entity estimates the fair value of each share option at $13.Based on probability estimates,25 employees are expected to leave the entity before the options vest.In accordance with AASB 2,how much remuneration expense related to the share option issue should Lancaster Ltd recognise for the year ended 30 June 2013?

A) zero
B) $10 833
C) $32 500
D) $65 000

Correct Answer:

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