On January 1, 2021 YL Company granted to an employee the right to choose either 12,000 shares or a cash payment equal to the market value of 10,000 shares. The grant is conditional upon completion of three years of service. On January 1, 2021 the share price is P51 while the fair value of the share alternative is P48 per share. Share prices were P54, P60 and P65 on December 31, 2021, December 31, 2022 and December 31, 2023 respectively. 15. Determine the compensation expense in 2021 a. 192,000 b. 214,000 c. 246,000 d. 202,000 16. Determine the compensation expense in 2022 a. 242,000 b. 202,000 c. 422,000 d. 286,000
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- 22. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. Liability on SAR at the end of year 2 is?14. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. Compensation expense recorded in year 1 would be?4. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. The plan had a two-year service period. Liability of SAR at year 3 is?
- 8. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. The plan had a two-year service period. Compensation expense in year 2 would be?Problem 4: (Share-based compensation: Share options) On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity’s employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is ₱50. By the end 0f 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. G. Fill in the amounts per individual account based on the exercise of the options on December 31, 2022 14. Debit to Cash?15. Debit to Share options outstanding?Share-based Compensation (Share Options) (PFRS 2)Problem 20. On January 1,2011, Smart Inc. granted 200 share options each to 1,000 employees,conditional upon the employee’s remaining in the entity’s employ during the vesting period. The shareoptions vests at the end of the three-year period. On grant date, each share option has a fair value ofP15. By December 31,2011, 200 employees have left and it is expected that on the basis of aweighted average probability, a further 100 employees will leave during the vesting period. ByDecember 31,2012, 150 employees have left and it is expected that a further 50 employees will leaveduring 2013. By December 31,2013, 100 employees have left. Ten share options are needed for thepurchase of one Ordinary Shares with par value of P10 at P12 per share. On January 1,2014, allshare options are exercised.Required: A. Prepare the adjusting entry on December 31,2011, 2012 and 2013.B. Based on your audit, determine the following:____________1. Compensation…
- 23. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. The plan had a two-year service period. Compensation expense in year 3?Problem 4: (Share-based compensation: Share options) On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity’s employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is ₱50. By the end 0f 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. G. Fill in the amounts per individual account based on the exercise of the options on December 31, 2022 16. Credit to Ordinary share capital?17. Credit to Share premium – ordinary shares?Share-based Compensation (Share Options) (PFRS 2)Problem 20. On January 1,2011, Smart Inc. granted 200 share options each to 1,000 employees,conditional upon the employee’s remaining in the entity’s employ during the vesting period. The shareoptions vests at the end of the three-year period. On grant date, each share option has a fair value ofP15. By December 31,2011, 200 employees have left and it is expected that on the basis of aweighted average probability, a further 100 employees will leave during the vesting period. ByDecember 31,2012, 150 employees have left and it is expected that a further 50 employees will leaveduring 2013. By December 31,2013, 100 employees have left. Ten share options are needed for thepurchase of one Ordinary Shares with par value of P10 at P12 per share. On January 1,2014, allshare options are exercised.Required: A. Prepare the adjusting entry on December 31,2011, 2012 and 2013.
- Problem 4: On January 1, 2019, Backstreet Co. purchased 15,000 shares of Nsync Inc. for P600,000. Commission paid to the broker is 5% of the total purchase price. On December 31, 2019 and December 31, 2020, the shares were quoted at P50 and P52 per share, respectively. On January 3, 2021, all of the 15,000 shares were sold at P62 per share. Commission paid for the sale amounted to P50,000. CLASSIFICATION 1. At what amount should the equity investment be initially recorded? 2. How much is the unrealized gain (loss) recognized in the 2019 profit or loss? 3. How much is the unrealized gain (loss) recognized in the 2019 other comprehensive income? 4. How much is the cumulative unrealized gain (loss) recognized in 2019 other comprehensive income? 5. How much is the cumulative unrealized gain (loss) recognized in other comprehensive income as of December 31, 2020? 6. How much is the realized gain (loss) recognized in profit or loss as a result of sale of investments on January 3, 2021? 7.…Problem 4: (Share-based compensation: Share options) On January 1, 2020, COLOR Company granted 250 share options to 300 employees, conditional upon the employees remaining in the entity's employ during the vesting period. The share options will vest over a three-year period. The fair value of each share option is P50. By the end of 2020, 25 employees have left and based on a weighted average probability, a further 20 employees will leave during the vesting period. By the end of 2021, only 10 employees have left and a further 28 employees will leave during 2022. By the end of 2022, only 30 employees left the entity. All share options are exercised at December 31, 2022. Requirements: E. Prepare all necessary entries for the year. F. Compute for the compensation expense for: 11. 2020 12. 2021 13. 2022On January 1, 2021, Cream Company offered the c share appreciation rights. The terms are predetermined price P100, 10,000 shares, vesting period 3 years and expiration date, December 31, 2023. The share appreciation is to be paid on the date of exercise. The following are the share prices: January 1, 2021 100 December 31, 2021 105 December 31, 2022 95 December 31, 2023 105 How much is the liability for December 31, 2022?