Problem 23. On January 1, 2011, SMC Inc. granted 200 share appreciation rights to each of its 600 employees on the condition that the employees remain in its employ for the next three years. No 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 200 employees December 31, 2014 250 employees December 31, 2015 150 employees The fair value and intrinsic value of the share appreciation right are as follows: Fair Value Intrinsic Value December 31,2011 16 December 31,2012 20 December 31,2013 22 18 December 31,2014 24 21 December 31,2015 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
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 the condition that the employees remain in its employ for the next three years. No 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 200 employees
December 31, 2014 250 employees
December 31, 2015 150 employees
The fair value and intrinsic value of the share appreciation right are as follows:
Fair Value Intrinsic Value
December 31,2011 16
December 31,2012 20
December 31,2013 22 18
December 31,2014 24 21
December 31,2015 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
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