You are the Chief Accounting Officer of Dream Job Corporation and have been asked for your expert opinion on the following future transaction. Dream Job Corporation is considering granting 10,000 stock options to certain senior-level executives on January 1, 2016 (grant date) to purchase 10,000 shares of common stock (par value $2) at an option price which will be equal to the market price at grant date.

(You can assume that the market price is $50. At 1/1/2016). The options will vest over one year, and will be exercisable on January 1, 2017. It is estimated that the options will have a fair value of $5 per share at the grant date. (All above values are the best estimate as to what the values will be on the specific dates and can be used for your analysis).

The option award will include an equity repurchase feature that allows the senior level executives to sell the stock back to Dream Job Corporation any time after December 31, 2017, at the then market price of the stock. The entity expects the executives to exercise their options and sell the stock back to Dream Job. It is your best estimate that the following will happen: the market price of the common stock will be $55 at December 31, 2016, and $65 at December 31, 2017. The executives will exercise their options on January 1, 2017 and on January 1, 2018 they will sell the stock back to Dream Job Corporation at $60 per share. Dream Job Corporation will cancel the shares when they repurchase them.

1. Review and discuss what the general rules are under US GAAP (ASC 718) and under IFRS (IFRS 2) for stock options that are granted with a "repurchase feature". Be sure to include your authoritative source.

2. Determine the necessary journal entries under both US GAAP and IFRS for Dream Job Corporation to record this transaction for 2016, 2017 and 2018. Include those entries below: