Alba SA granted 100 employees 500 options each, with a four-year service condition; the fair value of one option at the grant date is EUR 8, i.e. 400,000 for all the options granted. At the end of year two, the entity expects 90 % of the options to vest. Case convention: the elapsed share of the vesting period is 50 %. Compute the expected total cost, then the cumulative expense at the closing date.
- Fair value of all the options granted
- 400,000
- Share of the options expected to vest
- 90 %
- Elapsed share of the vesting period (case convention)
- 50 %