On January 1, 2018 Weins Inc. granted 100,000 stock appreciation rights (SARs) to its executives. (Weins Inc uses IFRS)Each SAR entitled its holder to receive cash equal to the difference between the market price of the common share and the benchmark price of $12.The SARs vested after two years and expired on Dec. 31, 2021.On January 1, 2020, 10,000 SARs are exercised. The market price of the shares remained at $22.On January 1, 2021, 50,000 SARS are exercised. The market price of the shares remained at $15The remaining SARs expired on December 31, 2021Pertinent stock-related data are listed below:DateFair value each SARMarket price of share1-Jan-18 $1131-Dec-18$7$1531-Dec-19$6$1431-Dec-20$8$2231-Dec-21$5$15Required: Prepare journal entries for the following:December 31, 2018, to record compensation expense.December 31, 2019, to record compensation expense.December 31, 2020, to record compensation expense.January 1, 2020, to record the partial exercise of the SARs.December 31, 2021, to record compensation expense.January 1, 2021, to record the partial exercise of the SARs.December 31, 2022, to record the expiry.

Stock Appreciation rights : Under this plan, the entity will make payments in cash to its employees…

Answered: On January 1, 2018 Weins Inc. granted…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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On January 1, 2018 Weins Inc. granted 100,000 stock appreciation rights (SARs) to its executives. (Weins Inc uses IFRS)
Each SAR entitled its holder to receive cash equal to the difference between the market price of the common share and the benchmark price of $12.
The SARs vested after two years and expired on Dec. 31, 2021.
On January 1, 2020, 10,000 SARs are exercised. The market price of the shares remained at $22.
On January 1, 2021, 50,000 SARS are exercised. The market price of the shares remained at $15
The remaining SARs expired on December 31, 2021

Pertinent stock-related data are listed below:

Date	Fair value each SAR	Market price of share
1-Jan-18		$11
31-Dec-18	$7	$15
31-Dec-19	$6	$14
31-Dec-20	$8	$22
31-Dec-21	$5	$15

Required: Prepare journal entries for the following:

December 31, 2018, to record compensation expense.

December 31, 2019, to record compensation expense.

December 31, 2020, to record compensation expense.

January 1, 2020, to record the partial exercise of the SARs.

December 31, 2021, to record compensation expense.

January 1, 2021, to record the partial exercise of the SARs.

December 31, 2022, to record the expiry.

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