share based compensation (share appreciation rights) employee left the entity during the next three years. No employees left the entity during the three-yearvesting period. The employees exercised their share appreciation rights as follows:December 31,2013December 31,2014December 31,2015200 employees250 employees150 employeesThe fair value and intrinsic value of the share appreciation right are as follows:Fair Value Intrinsic Value16December 31,2011December 31,2012December 31,2013December 31,2014December 31,2015202224182126The intrinsic value of the share appreciation right on the date of exercise is the amount paid out to theemployees.Required: A. Prepare the entries on December 31,2011, 2012, 2013, 2014 and 2015B. Based on the result of your audit, determine the following:1. Compensation Expense in 20112. Compensation Expense in 20123. Compensation Expense in 20134. Compensation Expense in 20145. Compensation Expense in 2015 Share-based Compensation (Share Appreciation Rights) (PFRS 2)Problem 23. On January 1,2011, SMC Inc. granted 200 share appreciation rights to each of its 600employees on condition that the employees to remain in its employ for the next three years. No

Compensation Expenses: These are the expenses met by an employer to pay benefits to an employee…

Answered: employee left the entity during the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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share based compensation (share appreciation rights)

employee left the entity during the next three years. No employees left the entity during the three-year
vesting period. The employees exercised their share appreciation rights as follows:
December 31,2013
December 31,2014
December 31,2015
200 employees
250 employees
150 employees
The fair value and intrinsic value of the share appreciation right are as follows:
Fair Value Intrinsic Value
16
December 31,2011
December 31,2012
December 31,2013
December 31,2014
December 31,2015
20
22
24
18
21
26
The intrinsic value of the share appreciation right on the date of exercise is the amount paid out to the
employees.
Required: A. Prepare the entries on December 31,2011, 2012, 2013, 2014 and 2015
B. Based on the result of your audit, determine the following:
1. Compensation Expense in 2011
2. Compensation Expense in 2012
3. Compensation Expense in 2013
4. Compensation Expense in 2014
5. Compensation Expense in 2015

Transcribed Image Text:Share-based Compensation (Share Appreciation Rights) (PFRS 2) Problem 23. On January 1,2011, SMC Inc. granted 200 share appreciation rights to each of its 600 employees on condition that the employees to remain in its employ for the next three years. No

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