注会-会计英语讲义(16)

会计英语基础讲义

follows：

Example 2：On 1 January 20X1 an entity grants 100 cash share appreciation rights (SARS) to each of its 500 employees, on condition that the employees continue to work for the entity until 31 December 20X3.

During 20X1 35 employees leave. The entity estimates that a further 60 will leave during 20X2 and 20X3.

During 20X2 40 employees leave and the entity estimates that a further 25 will leave during 20X3.

During 20X3 22 employees leave.

At 31 December 20X3 150 employees exercise their SARs. Another 140 employees exercise their SARs at 31 December 20X4 and the remaining 113 employees exercise their SARs at the end of 20X5.

The fair values of the SARs for each year in which a liability exists are shown below,

together with the intrinsic values at the dates of exercise.

Required

Calculate the amount to be recognized in the income statement for each of the five years ended 31 December 20X5 and the liability to be recognized in the balance sheet at 31 December for each of the five years.

For the three years to the vesting date of 31 December 20X3 the expense is based on the entity’s estimate of the number of SARs that will actually vest (as for an

equity-settled transaction). However, the fair value of the liability is re-measured at each year-end.

The intrinsic value of the SARs at the date of exercise is the amount of cash actually paid.