Page 431 - SBR Integrated Workbook STUDENT S18-J19

Answers

Example 6

Cash-settled scheme

31 December 20X4

(20 – 1) × 50,000 × $27 × ½ = $12.8m liability

Dr Profit or loss $12.8m

Cr Equity $12.8m

31 December 20X5

(20 – 3) × 50,000 × $35 = $29.8m liability

Dr Profit or loss ($29.8m – $12.8m) $17.0m

Cr Liabilities $17.0m

31 December 20X6

$m

Liability b/fwd 29.8
Cash paid (7 × 50,000 × $37) (13.0)
Expense (bal. fig.) 3.2

–––––

Liability c/fwd (10 × 50,000 × $40) 20
–––––

425