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Share-based payments
Example 4.2
On 1 January 20X1, an entity grants 1000 cash share appreciation rights (SAR)
to each of its 200 employees, on condition that they continue to work for the
entity until 31 December 20X3.
During 20X1, 10 employees leave. The entity estimates that a further 30 will
leave during 20X2 and 20X3.
During 20X2, 20 employees leave. The entity estimates that a further 5 will
leave during 20X3.
During 20X3, 10 employees leave.
The fair values of one SAR at each year end are shown below.
Fair value
$
20X1 10.00
20X2 12.00
20X3 15.00
Required:
Show the liability held on the SOFP and the expense within the SOPL
arising from the share appreciation rights for each year of the vesting
period.
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