Question
Share Options Outstanding Account is shown on the
liabilities side in the Balance Sheet under the head:Solution
Share Options Outstanding Account is typically shown on the liabilities side of the balance sheet under the head "Reserves and Surplus." This account represents the potential liability arising from share options that have been granted to employees or other parties but have not been exercised or settled at the balance sheet date. It is recorded as part of the company's equity reserves until the options are exercised, at which point it may result in a change in equity.
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