On January 1, 2020, BLITZEN Company granted the president, 20,000 share appreciation rights for past services. Those rights are exercisable immediately and expire on January 1, 2023. On exercise, the grantee is entitled to receive cash for the excess of the market price on the exercise date over the market price on the grant date. The grantee did not exercise any of the rights in 2020. The market price of share was ₱30 on January 1, 2020 and ₱45 on December 31, 2020. What amount should be recognized as compensation expense for 2020?
On January 1, 2020, BLITZEN Company granted the president, 20,000 share appreciation rights for past services. Those rights are exercisable immediately and expire on January 1, 2023. On exercise, the grantee is entitled to receive cash for the excess of the market price on the exercise date over the market price on the grant date. The grantee did not exercise any of the rights in 2020. The market price of share was ₱30 on January 1, 2020 and ₱45 on December 31, 2020. What amount should be recognized as compensation expense for 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7. On January 1, 2020, BLITZEN Company granted the president, 20,000 share appreciation rights for past services. Those rights are exercisable immediately and expire on January 1, 2023. On exercise, the grantee is entitled to receive cash for the excess of the market price on the exercise date over the market price on the grant date. The grantee did not exercise any of the rights in 2020. The market price of share was ₱30 on January 1, 2020 and ₱45 on December 31, 2020. What amount should be recognized as compensation expense for 2020?
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