Solution-Compute the amounts of expense and the related

Compute the amounts of expense and the related liability

Assignment Help Accounting Basics

Reference no: EM133180878

Question - On 1.1.2017, MEERA Bhd grants to an employee the right to choose either 12,000 shares or cash payment equal to the value of 10,000 shares (phantom shares). The grant is conditional upon the employee remaining in the company's employ for three years. If the employee chooses the share alternative, the shares must be held for three years after vesting date.

At grant date, the company's share price is RM5.00. At the end of year 2017, 2018 and 2019, the share price is RM5.20, RM5.60 and RM6.20, respectively. After taking into account the post-vesting transfer restrictions, the grant date fair value of the share alternative is RM4.90.

MEERA shares have a nominal value of RM1 each.

Required -

a) Compute the amounts of expense and the related liability and equity components in each year.

b) Show the effect if, at the end of year 2019, the employee chooses:

(i) the cash settlement, and

(ii) the equity settlement

Reference no: EM133180878

Questions Cloud

Difference between dry and wet acid deposition : Describe the difference between dry and wet acid deposition. How does acid deposition affect aquatic ecosystems?

Devise an incentive system : Peter Nygard owns a large estate in the Bahamas that is used to entertain. In one example of goal setting "Nygard style," the CBC reported that Nygard had asked

Four major techniques for employee selection : Compare and contrast four major techniques for employee selection: biographical information, interviews, references and letters of recommendation, and assessmen

Greenhouse gases promote global warming : How does CO2 and other greenhouse gases promote global warming? Discuss your opinion on use of geoengineering measures to mitigate the effects of global warming

Compute the amounts of expense and the related liability : MEERA shares have a nominal value of RM1 each. Compute the amounts of expense and the related liability and equity components in each year

How can hrm impact an organization culture : How can HRM impact an organization's culture? You may want to consider issues such as workforce diversity and inclusion that are hot button issues.

Healthcare practice settings foster communication : Healthcare practice settings foster communication in several methods. The one method I would like to see improved in my organization is

Emergency management and planning : These disasters will cause policy change affecting emergency management doctrine and comprehensive planning at all levels of government and the private sector.

Can laura deduct the suspended losses after the revocation : X Corp has AAA of $2,000 and Accumulated E&P of $3,000. Can Laura deduct the suspended losses after the revocation of the S election

User Account

All Pages

Compute the amounts of expense and the related liability

Reference no: EM133180878

Reference no: EM133180878

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT