G Ltd. has initiated a share-based payment arrangement with its employees. Accordingly, an employee who remains in service for at least five years from the grant date can exercise the option at any time after the end of

CS Executive · Corporate and Management Accounting · PYQS · December 2022
G Ltd. has initiated a share-based payment arrangement with its employees. Accordingly, an employee who remains in service for at least five years from the grant date can exercise the option at any time after the end of five years but before the end of 12th year from the grant date. In this case, the vesting period of the option is:
(A) 5 years
(B) 7 years
(C) 12 years
(D) As opted by the employee

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Accounting Standards

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