Assignment
On January 1, 2017, Company One's Board of Directors approved granting 5,000 stock options to a select group of senior employees. The requisite service period is five years with 20% of the options vesting each year from 2017 to 2021. The fair value of the option is as below:
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Jan 1, 2017
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$20
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Dec 31, 2017
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$21
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Dec 31, 2018
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$22
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Dec 31, 2019
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$23
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Dec 31, 2020
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$24
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Dec 31, 2021
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$25
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Instruction:
• Based on the description in question, determine the type of vesting condition (cliff vs. graded)
• What is the total compensation expense needed to be recognized under US GAAP for each year from 2017 to 2021?
• What is the total compensation expense needed to be recognized under IFRS for each year from 2017 to 2021 (round to one decimal point)?
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.