Helia SA has granted options with a four-year service condition. At the end of year one, the cumulative expense recognised is 200,000. At the end of year two, the entity revises the number of options it expects to vest: the expected total cost becomes 720,000 (case data; the grant-date fair value is unchanged). Case convention: the elapsed share of the vesting period is 50 %. Compute the cumulative expense at the end of year two and the expense for that year.
- Expected total cost after revision (case data)
- 720,000
- Elapsed share of the vesting period (case convention)
- 50 %
- Cumulative expense at the end of year one
- 200,000