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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 |
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