Orsay SA issues 15,000 shares on exercise of options under an equity-settled plan; it receives 150,000 as the exercise price. The share-based payment reserve built up for these options, measured at the grant date, is 90,000. Case convention: the reserve is cleared to share capital and premium on exercise. Record the exercise entry.
- Cash received on exercise
- 150,000
- Reserve built up for these options (grant-date fair value)
- 90,000