How much was the actual cash settlement to the employees

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Question - On January 1, 2020, Nail Corporation issued 20,000 share appreciation rights to selected employees that vest on January 1, 2023 provided the employees are still in the employ of the company. Each SAR provides for a cash payment equal to the excess of the company's share market price on exercise date over P150. The company's share price on the ff. dates are as follows:

December 31, 2020 175

December 31, 2021 180

December 31, 2022 190

All of the share appreciation rights were exercised when the share market price was 195.

The fair value of each SAR is made available to you at the ff. dates:

December 31, 2020 27

December 31, 2021 36

December 31, 2022 40

Q1. Amount of compensation expense for 2020, 2021, and 2022,respectively.

Q2. What amount of liability shall be presented or shown in the statement of financial position at December 31, 2020, December 31, 2021 and December 31, 2022, respectively?

Q3. How much was the actual cash settlement to the employees upon exercise of the share appreciation rights when the share market price is P195?

Q4. In relation to Q3, how much additional expense is recognized at the date of exercise prior to actual cash settlement?

Reference no: EM132885613

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