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Prashanth (Chartered Accountant) (2322 Points)

01 May 2011  

 

1. Fair value of the option on the grant date is `. 14 on a condition that employees will remain in the service for three 3years  and subsequently at the end of 2nd year the company has modified fair value of the option as `. 15 and on that date of modification   fair value of the original option is `. 13.Number of employees

Answer according to the institute study material remained as 100 through the 3years.
is=(100*14)*3+(100*2)*2=4600

But my question is actually increased option is 15,but we are accouting for `.16,why it is so?pls explain me