On January 1, 2019, Kyle company established a share appreciation rights plan to key employees where they are to receive cash at any time during the next four years. The predetermined price is P40 on 60,000 share appreciation rights (SARs) of which 20,000 SARs were exercised on December 31, 2021. Market prices on the following dates are as follows: Jan. 1, 2019, P50, Dec. 31, 2019, P56, Dec. 31, 2020, P70 and P60 on Dec. 31, 2021. a. Determine the amount of compensation expense to be recognized for the year 2019, 2020 and 2021. b. Determine the amount of liability to be presented in the statement of financial position for the year ended December 31, 2019, December 31, 2020 and December 31, 2021. c. Prepare the journal entries for 2019, 2020 and 2021.
On January 1, 2019, Kyle company established a share appreciation rights plan to key
employees where they are to receive cash at any time during the next four years. The
predetermined price is P40 on 60,000 share appreciation rights (SARs) of which 20,000 SARs
were exercised on December 31, 2021. Market prices on the following dates are as follows: Jan.
1, 2019, P50, Dec. 31, 2019, P56, Dec. 31, 2020, P70 and P60 on Dec. 31, 2021.
a. Determine the amount of compensation expense to be recognized for the year 2019, 2020
and 2021.
b. Determine the amount of liability to be presented in the
the year ended December 31, 2019, December 31, 2020 and December 31, 2021.
c. Prepare the
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