Accounting of ESOP

This query is : Resolved 

25 February 2020 In ESOP we transfer the excess of amount in "ESOP outstanding account" to General reserve. What is the reason behind that. Please explain.

Thanks
Navya

22 May 2020 I think when ESOP issues are not subscribed and lapse occurred in the year other than the year it was vested the above entry is posted otherwise it is debited to PL



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