Ditsapelo Unlimited on 1 January 2024 granted 300 share appreciation rights (SARs) to each of its 200 employees on the condition that they continue to work for the entity for two years. At 1 January 2024, the entity expects that 50 of those employees will leave each year

Ditsapelo Unlimited on 1 January 2024 granted 300 share appreciation rights (SARs) to each of its 200 employees on the condition that they continue to work for the entity for two years. At 1 January 2024, the entity expects that 50 of those employees will leave each year

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...

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On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.
On January 1,2020, an entity granted 50 share appreciation rights to each of its 200 employees on condition that the employees on condition that the employees remain in its employ for the next 3 years. Exercise of the share appreciation rights were as follows:December 31,2023 10 employeesDecember 31,2024 100 employeesDecember 31,2025 60 employeesActual and estimates of employees who left and are expected to leave are as follows:end of 2020: 10 employees left and additional 5 are expected to leave within the vesting period.end of 2021:17 employees left and additional 3 are expected to leave within the vesting period.end of 2022: no employee leftThe fair value of the share appreciation rights are as follows:Fair valueDecember 31,2020 P 15 December 31,2021 18December 31,2022 20December 31,2023 21December 31,2024 24December 31,2025 261. How much is the compensation expense to be recognized for the year 2024? 2. How much is the compensation expense in each of the years 2021 and 2022,…
On January 1,2020, an entity granted 100 share appreciation rights to each of its 200 employees on condition that the employees on condition that the employees remain in its employ for the next 3 years. Exercise of the share appreciation rights were as follows:December 31,2023 40 employeesDecember 31,2024 100 employeesDecember 31,2025 60 employeesActual and estimates of employees who left and are expected to leave are as follows:end of 2020: 10 employees left and additional 5 are expected to leave within the vesting period.end of 2021:17 employees left and additional 3 are expected to leave within the vesting period.end of 2021: no employee leftThe fair value of the share appreciation rights are as follows:Fair valueDecember 31,2020 P 15 December 31,2021 18December 31,2022 20December 31,2023 21December 31,2024 24How much is the compensation expense to be recognized for the year 2024?
On January 1,2020, an entity granted 50 share appreciation rights to each of its 200 employees on condition that the employees on condition that the employees remain in its employ for the next 3 years. Exercise of the share appreciation rights were as follows:December 31,2023 10 employeesDecember 31,2024 100 employeesDecember 31,2025 60 employeesActual and estimates of employees who left and are expected to leave are as follows:end of 2020: 10 employees left and additional 5 are expected to leave within the vesting period.end of 2021: 17 employees left and additional 3 are expected to leave within the vesting period.end of 2022: no employee leftThe fair value of the share appreciation rights are as follows:Fair value December 31,2020 P 15 December 31,2021 18December 31,2022 20 December 31,2023 21 December 31,2024 24December 31,2025 26How much is the compensation expense in each of the years 2021 and 2022, respectively?Answer should be in this format:Example:100,000 and…
She Company granted 200 share appreciation rights to each of the 1,000 employees on January 1, 2021. The management estimated that 90% of the awards shall vest on December 31, 2023. The fair value of each share appreciation rights on December 31, 2021 is P10. What amount should be reported as accrued liability for the share appreciation rights on December 31, 2022?
On January 1,2020, Striking Red Company issued 10,000 share appreciation rights to selected employees that vest after three years, provided the employees remain employed by the company at least until the exercise date. Each SAR entitles the employee a cash payment for an amount the share price of the company's ordinary share exceeds P 120. The market price of Striking Red's ordinary share at the end of each vesting year is as follows: December 31, 2020 P 140 December 31,2021 150 December 31, 2022 165 REQUIRED: a.) Prepare all the entries in the books of Striking Red Company for years 2020, 2021 and 2022. b.) Give the entry for the exercise of the SAR assuming that 1.) The rights were exercised on January 1,2023, when the market price of the ordinary share is P 165. 2.) The rights were exercised on December 31,2023, when the market price of the ordinary share is P 172.
Cheerup Corp. granted 100 cash share appreciation rights (SARs) to each of its 200employees in January 2020, on the condition that they stay with the company for the next three years. Determine the compensation expense in 2020
Gold Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P200 and the market price of the share on the date each right is exercised. The service period is 2022 through 2024 and the rights are exercisable in 2025. The market price of the share was P250 and P280 on December 31, 2022 and 2023, respectively. What amount should Gold Company report as liability under the share appreciation rights on December 31, 2023?ANSWER: 1,600,000 Please kindly show solution. Thanks
Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020? Copenhagen Company granted 200 share appreciation rights to each of the 500 employees on January 1, 2016. The rights are due to vest on December 31, 2019 with payment being made on December 31, 2020. Only 80% of the awards vest. January 1, 2016 (predetermined price)150 December 31, 2016 : 180 December 31, 2019 : 210 December 31, 2020 : 190 What amount should be recognized as gain on reversal of share appreciation rights on December 31, 2020?
Lion Company granted 30,000 share appreciation rights which entitled key employees to receive cash equal to the difference between P20 and the market price of the share on the date each right is exercised. The service period is 2019 through 2021, and the rights are exercisable in 2022. The market price of the share was P25 and P28 on December 31, 2019 and 2020, respectively. How much should be recorded as compensation expense for 2020?
Haynna Company on Jan. 1, 2014 granted 100 share appreciation rights to each of its 1,000 employees on condition that the employees remain it the company for the next three years. No employees left the entity during the three-year vesting period. The employees exercised their share appreciation rights as follows: 250 employees on Dec. 31, 2016, 250 employees on Dec. 31, 2016 and 500 employees for Dec. 31, 2017. The Market Value and intrinsic value of the share appreciation right are as follows: Date Market Value Intrinsic Value Dec. 31, 2014 15 Dec. 31, 2015 18 Dec. 31, 2016 20 15 Dec. 31, 2017 21 20 Dec. 31, 2018 25 Prepare all indicated entries for 2014 to 2018 in connection with the share appreciation rights. The intrinsic value of the share appreciation right on the date of exercise is the amount paid out to the employees.
Aero Ltd (Aero) has granted 700 share appreciation rights to each of its 400 employees on 1 January 2020. The rights are due to vest on 31 December 2022 with payment payable on 31 December 2023. During 2020, 50 employees leave, and it is anticipated that a further 50 employees will leave during the vesting period. Fair values of the share appreciation rights are as follows: 1 January 2020 $15 31 December 2020 $18 31 December 2021 $20 Required: What liability will be recorded on 31 December 2020 for the share appreciation rights in accordance with HKFRS 2 'Share-based Payments'? A. $2,520,000 B. $1,260,000 C. $3,780,000 D. $1,680,000