Briefly summarize the steps in accounting for a SAR plan

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Problem - Share Appreciation Rights - Instead of a fixed compensatory share option plan, Wright Company is considering providing its key executives with a plan that involves share appreciation rights (SAR).

Required -

Explain what is meant by a SAR plan.

Identify the key differences between accounting for a SAR plan and a fixed compensatory share option plan.

Briefly summarize the steps in accounting for a SAR plan (assume that the executive is expected to receive cash on the date of exercise).

Reference no: EM132889155

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