Ican 2023 Corporate Reporting Question 6

Omoge Nigeria PLC has the following share options scheme for its directors as at May 31, 2021. Directors Name Grant Date Options Granted Fair Value of Options at grant date Exercise Price Vesting Date Adamu Salisu June 1, 2019 400,000 3 4 June 2021 Chukwu Eze June 1, 2020 1,200,000 2.5 5 June 2023 The price of the company’s share at May 31, 2021 is N8 per share and at May 31, 2020 was N8.50 per share. The directors must be working for Omoge Nig. PLC on the vesting dates in order for the options to vest. No directors have left the company since the issue of the share option and none are expected to leave before June 2023. The options can be exercised on the first day of the month in which they vest. In accordance with IFRS 2, an expense of N600,000 has been charged to profit in the year ended May 31, 2020 in respect of the share option scheme. The cumulative expense for the two years ended May 31, 2021 is N2,200,000. Tax allowances arise when the options are exercised and the tax allowance is based on the option’s intrinsic value at the exercise date. Assume tax rate of 30%.