Accounting Policies for ESOS

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... ^[2][(c) Where the accounting value is accounted for as employee compensation in accordance with clause (b), the amount shall be amortised as under : (i) Where the scheme does not provide for graded vesting, the amount shall be amortised on a straight-line basis over the vesting period. (ii) Where the scheme provides for graded vesting - (1) the vesting period shall be determined separately for each separate vesting portion of the option, as if the option was, in substance, multiple option and the amount of employee compensation cost shall be accounted for and amortised accordingly on a straight-line basis over the vesting period; or (2) the amount of employee compensation cost shall be accounted for and amortised on a st....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the exercise period. The accounting value of the option being: 500 x (160-40) = 500 x 120 = 60,000 The accounting entries would be as follows: 1/4/1999 Deferred Employee Compensation 60000 Expense Employee Stock Options Outstanding 60000 (Grant of 500 options at a discount of Rs. 120 each)   31/3/2000 Employee Compensation Expense 24000 Deferred Employee Compensation Expense 24000 (Amortisation of the deferred compensation over two and a half years on straight-line basis)   31/3/2001 Employee Compensation Expense 24000 Deferred Employee Compensation Expenses 24000 (Amortisation of the deferred compensation over two and a half years on straight-line basis) &nbsp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 60000 Deferred Employee Compensation Expense Account Date Particulars Amount (Rs.) Date Particulars Amount (Rs.) 1/4/1999 ESOS Outstanding 60000   31/3/2000 Employee Compensation 24000         31/3/2001 Employee Compensation 24000         1/5/2001 ESOS Outstanding 3600         31/3/2002 Employee Compensation 8400     60000       60000 Employee Stock Options Outstanding will appear in the Balance Sheet as part of Net Worth or Shareholders' Equity. Deferred Employee Compensation will appear in the Balance Sheet as a ne....