Reference no: EM132560682
On January 1, 2017, Foster Co. established a share appreciation rights plan for the executives. The plan entitled them to receive cash at any time during the next 4 years for the difference between the market price of the ordinary share and a pre-established price of P20 on 60,000 share appreciation rights or SARs. On December 31, 2019, 20,000 SARs are exercised by executives.
Current market prices of the share are as follows:
January 1, 201725 per share
December 31, 201728 per share
December 31, 201835 per share
December 31, 201930 per share
Question 1: What amount od compensation expense should be recognized for 2017?
Question 2: What amount of compensation expense should be recognized for 2018?
Question 3: What amount should be recognized as accrued liability for share appreciation rights of December 31, 2019?