Page 147 - SBR Integrated Workbook STUDENT S18-J19
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Share-based payment
Example 6
Cash-settled scheme
On 1 January 20X4 an entity granted 20 employees 50,000 share appreciation
rights (SARs) each. To be entitled to the bonus, the individuals must still be
employed on 31 December 20X5.
In the year ended 31 December 20X4, no employees left but one was
expected to leave prior to the vesting date.
In the year ended 31 December 20X5, three employees left.
The remaining employees are allowed to exercise their rights on 31 December
20X6 or on 31 December 20X7. Seven employees exercised their rights on 31
December 20X6 when the intrinsic value per SAR was $37.
The following information is available:
Fair value per SAR
31 December 20X4 $27
31 December 20X5 $35
31 December 20X6 $40
Calculate the expense to be charged in the statement of profit or loss
and the year end liability for the years ended 31 December 20X4, 20X5
and 20X6.
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