Beta Limited (investee) has issued 2,000 equity shares which are outstanding at the reporting date. On this date, Beta issues 1,000 share options to…

Beta Limited (investee) has issued 2,000 equity shares which are outstanding at the reporting date. On this date, Beta issues 1,000 share options to its employees, which can be converted into 1,000 equity shares of Beta. The grant-date fair value of each option issued is 1. The options will vest over five years and all 1,000 options are expected to vest. Beta recognises share-based remuneration expense of 200in its profit or loss and an offsetting credit to equity in the current year. Alpha Limited (investor) holds 600 shares of Beta. Alpha has significant influence over Beta. Alpha recognises its share of the remuneration expense in its profit or loss as part of income from the equity-accounted investees. It records the offsetting credit as a reduction of its investment in Beta. At the end of the vesting period, all options vest and are exercised. The exercise price is 3 per option. The face value per share is 1. Required (ii) Pass Journal entries for exercising of option in the 5th year, in the books of Beta Limited.