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prepare any necessary entries in p s consolidated financial statements as at dec 31 613370

Group share scheme (fresh issue of shares)

On 1 July 2013 an employee of S Limited, a subsidiary of the H plc group, is awarded options under the H group share scheme over 3,000 shares in H plc at £1.50 each, exercisable between 1 July 2018 and 1 July 2019, subject to certain performance criteria being met in the three years ending 30 June 2016. The fair value of the options on 1 July 2013 is £1 each.

H plc grants the award and has the obligation to settle it.

When preparing accounts during the vesting period H plc and its subsidiaries assume that the award will vest in full. The options are finally exercised on 1 September 2018, at which point H plc issues 3,000 new shares to the EBT at the then current market price of £3.50 for £10,500. The EBT funds the purchase using the £4,500 option proceeds received from the employee together with £6,000 contributed by S Limited, effectively representing the fair value of the options at exercise date (3,000 × [£3.50 – £1.50]). H plc and its subsidiaries have a 31 December year end.

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