A. Explain whether each of the following meet the definition

A. Explain whether each of the following meet the definition of a financial instrument: 

i. Issue of ordinary share capital 

ii. Issue of debt 

iii. Sale of goods on credit 

iv. Purchase of goods on credit N. 

B. A company grants 2,000 share options to each of its three directors on 1 January 2012 subject to the directors being employed on 31 December 2014. The options vest on 31 December 2014. The FV of each option on 1 January 2012 is GHICIO and it is anticipated that all of the share options will vest on 31 December 2014. The options will only vest if the company’s share price reaches GHC14 per share. The price at 31 December 2012 was GHC8 and it is not anticipated that it will rise over the next two years. It is anticipated that There will only be two directors employed on 31 December 2014.

Required: 

How will the share options be treated in the financial statements for the year ended December 2012?