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Accounting Policies for ESOS

SCHEDULE - I - Guidelines - Employee Stock Option Scheme and Employee Stock Purchase Scheme - SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 - SCHEDULE - I - SCHEDULE I (Clause 13.1) : (a) In respect of options granted during any accounting period, the accounting value of the options shall be treated as another form of employee compensation in the financial statements of the company. [1][(b) The accounting value of options shall be equal to the aggregate, .....

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period of the last separately vesting portion of the option): Provided that the amount of employee compensation cost recognized at any date at least equals the fair value or the intrinsic value, as the case may be, of the vested portion of the option at that date. ] (d) When an unvested option lapses by virtue of the employee not conforming to the vesting conditions after the accounting value of the option has already been accounted for as employee compensation, this accounting treatment shall b .....

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counting entries would be as follows: 1/4/1999 Deferred Employee Compensation 60000 Expense Employee Stock Options Outstanding 60000 (Grant of 500 options at a discount of ₹ 120 each) 31/3/2000 Employee Compensation Expense 24000 Deferred Employee Compensation Expense 24000 (Amortisation of the deferred compensation over two and a half years on straight-line basis) 31/3/2001 Employee Compensation Expense 24000 Deferred Employee Compensation Expenses 24000 (Amortisation of the deferred comp .....

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nding Account Date Particulars Amount (Rs.) Date Particulars Amount (Rs.) 1/5/2001 Employee Compensation/ Deferred Compensation 18000 1/4/1999 Deferred Compensation 60000 30/6/2002 Paid Up Capital/ Share Premium 36000 1/10/2002 Employee Compensation 6000 60000 60000 Deferred Employee Compensation Expense Account Date Particulars Amount (Rs.) Date Particulars Amount (Rs.) 1/4/1999 ESOS Outstanding 60000 31/3/2000 Employee Compensation 24000 31/3/2001 Employee Compensation 24000 1/5/2001 ESOS Outs .....

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