Lumen SA has granted options that vest after five years of service. The expected total cost of the plan, the grant-date fair value multiplied by the number of options expected to vest, is 750,000 (case data). Case convention: services are received evenly, and two years out of five have elapsed, i.e. 40 % of the vesting period. Compute the cumulative expense at the closing date.
- Expected total cost of the plan (case data)
- 750,000
- Elapsed share of the vesting period (case convention)
- 40 %