On January 1, 2020, Oriole Corporation granted 19,400 options to key executives. Each option allows the executive to purchase one share of Oriole's common shares at a price of $20 per share. The options were exercisable within a two- year period beginning January 1, 2022, if the grantee was still employed by the company at the time of the exercise. On the grant date, Oriole's shares were trading at $15 per share, and a fair value options pricing model determined total compensation to be $800,000. Management has assumed that there will be no forfeitures because they do not expect any of the key executives to leave. On May 1, 2022, 5,820 options were exercised when the market price of Oriole's shares was $26 per share. The remaining options lapsed in 2023 because executives decided not to exercise them. Management was indeed correct in their assumption regarding forfeitures in that all executives remained with the company. Assume that Oriole follows IFRS. Required: Prepare the necessary journal entries related to the stock option plan for the years ended December 31, 2020 through 2023.

On January 1, 2020, Oriole Corporation granted 19,400 options to key executives. Each option allows the executive to purchase one share of Oriole's common shares at a price of $20 per share. The options were exercisable within a two- year period beginning January 1, 2022, if the grantee was still employed by the company at the time of the exercise. On the grant date, Oriole's shares were trading at $15 per share, and a fair value options pricing model determined total compensation to be $800,000. Management has assumed that there will be no forfeitures because they do not expect any of the key executives to leave. On May 1, 2022, 5,820 options were exercised when the market price of Oriole's shares was $26 per share. The remaining options lapsed in 2023 because executives decided not to exercise them. Management was indeed correct in their assumption regarding forfeitures in that all executives remained with the company. Assume that Oriole follows IFRS. Required: Prepare the necessary journal entries related to the stock option plan for the years ended December 31, 2020 through 2023.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...

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