Nordis SA cancels an equity-settled option plan and pays the executives 250,000 in cash at the cancellation date. The fair value of the cancelled options at that date is 220,000 (case data). Case convention: the remaining expense has already been accelerated. Record the entry for the payment.
- Payment to the executives on cancellation
- 250,000
- Fair value of the cancelled options at the cancellation date
- 220,000