Wigan Ltd Grants 100 Options to Each of Its 80

Multiple Choice

Wigan Ltd grants 100 options to each of its 80 employees on 1 July 2009.The fair value of each option at grant date is $20.The vesting conditions allow shares to vest if the following performance targets are achieved:
$$\begin{array} { | l | l | } \hline \text { Year ending } 30 \text { June } &{ \text { Condition } } \\\hline 2010 & \text { If earnings have increased by } > 18 \% \\\hline 2011 & \begin{array} { l } \text { If earnings have increased by } > 13 \% \text { averaged across } \\\text { the 2 year period }\end{array} \\\hline 2012 & \begin{array} { l } \text { If earnings have increased by at least } 10 \% \text { averaged } \\\text { across the 3 year period }\end{array} \\\hline\end{array}$$
The following information is available:

What action must Wigan Ltd take that is in compliance with AASB 2,if the option does not vest on 30 June 2012?

A) No action is necessary.
B) It must modify the terms and conditions of the option to allow the employees to benefit from the share-based payment transaction in future.
C) The equity account arising from the share-based payment transaction shall be reversed and credited to revenue.
D) The equity account arising from the share-based payment transaction shall be reversed and credited to liability.