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Hi All,

What is the entry when the employee exercises the options under ESOP?

Considering the expenses recognised each year and granted options 10000 for 5 employees and exercise price 13. All the 10000 shares are exercised

Year 1 Debit ESOP expense 100
Credit ESOP expense 100

Year 2 Debit ESOP expense 250
Credit ESOP expense 250

Thanks,
Anuradha

so many people use abbreviations those days lol what's ESOP please?

employee stock option plan

Hi,

What is the entry when the employee exercises the options under ESOP?

Considering the expenses recognised each year and granted options 10000 for 5 employees and exercise price 13. All the 10000 shares are exercised

Year 1 Debit ESOP expense 100
Credit ESOP reserve (equity) 100

Year 2 Debit ESOP expense 250
Credit ESOP reserve (equity) 250

13 x the number of share exercised as share cap, and cash coming in.

standard doesn't direct what to do within equity