Page 59 - IC46 addendum

The Insurance Times

b. Under employees stock purchase scheme
ESPS, the company offers shares to
employees as a part of public offer, or
otherwise.

c. Directors are not eligible to participate in
ESOS.

d. The scheme must be approved by passing a
special resolution in common meeting.

e. The scheme must have at least one year
between the grant of options and vesting of
options.

31. Which accounting treatment is correct in
respect of ESOS?

a. The accounting value of options shall be
treated as employee compensation in the
financial statement.

b. Accounting value is aggregate of the fair
value of the options of all employees stock
options granted during the financial year.

c. Fair value means the option discount.
d. The accounting value of options as employee

compensation shall be amortised on a
straight-line basis over the vesting period.
e. All are correct.

www.sashipublications.com Email: info@sashipublications.com 58

Copyright@ The Insurance Times. 09883398055 / 09883380339