I am a student preparing for the Nov 2019 Intermediate examination. My query is regarding the entry for recording the first journal entry,
i.e.,
Employee Stock Compensation Expense A/C Dr
To Employee Stock Option Outstanding A/C
The dates given are really confusing.
In the textbook, it is given it should be recorded at the ,for eg. 31st March of the year i.e., year end
However,
My tutor has taught me the first entry should be dated in the very first day i.e., 1st April of the previous year, i.e., beginning of the financial year.
What to do ? Which one is correct?
Could somebody clear it out?
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ESOP : Employee Sotck Option Plan
Replies (1)
just change ur tutor and tell him it's always record when whole year end and employee still in job that time we never record entry when we issue isop because in start we don't know whether employee is work whole year or leave the job so we pass entry in end and same as in future and if employee leave the job we again pass entry reverse but it's done when we issue share against isop
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