Calculate the amount that shall be recognized

Assignment Help Accounting Basics
Reference no: EM133188098

Question - At 1.1.2017, KAZA Bhd grants 80,000 share appreciation rights to employee, with service condition that the employee will still be employed in KAZA for three years. At grant date, KAZA's share price is RM3.00. The rights grants have a life of five years. At 31.12.2019, employee will be received cash by KAZA based on the value of the rights on that date. At the end of years 2020 and 2021, KAZA will pay the further cash to the employee if the rights have appreciated in value. Fair value of the share appreciation rights for the five-years are as follows:

Year

Share price (RM)

Dividend yield (%)

Value of rights

0

3.00

1

0.81

2017

3.60

1.5

1.05

2018

4.20

1.5

1.39

2019

4.80

2

1.67

2020

5.50

2

2.09

2021

6.20

3

2.67

Required -

a) Calculate the amount that shall be recognized for the employee service in each of the five year period.

b) Show the journal entry in each year.

Reference no: EM133188098

Questions Cloud

What are the three points in the discipline process : 1. What are the three points in the discipline process? 2. Distinguish between the two types of behaviors.
Capture the packets between your kali attacker and victim : Hijack a DNS query from your XP VM to pfsense. Capture the packets between your Kali attacker and your victim
Calculate the contribution margin per unit : Calculate the contribution margin per unit for both the current production of compasses and the special order compasses
What amount should be capitalized initially as software cost : Cost incurred for coding and testing to establish technological feasibility 1,000,000. What amount should be capitalized initially as software cost
Calculate the amount that shall be recognized : At 31.12.2019, employee will be received cash by KAZA based on the value of the rights on that date. Calculate the amount that shall be recognized
What amount of prime costs was added to production : Direct materials: Beginning inventory $40,000. What amount of prime costs was added to production during 20X5
Compare and contrast microorganism types : Discuss the role of immunological responses related to inflammation, infection, hypersensitivity, autoimmunity and immunisation
Prepare cost of goods manufactured schedule for the quarter : Messinger Manufacturing Company had the following account balances for the quarter ending March 31, Prepare cost of goods manufactured schedule for the quarter
What would be the lowest acceptable transfer price : The Spanish division produces a part needed for the product made by the U.S. division. What would be the lowest acceptable transfer price

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute what the predetermined manufacturing overhead rate

The company estimates that 1,830 direct labor hours will be worked, What the predetermined manufacturing overhead rate per direct labor hour will be??

  Transfer of receivables without recourse sek corporation

Prepare the journal entry on July 1, 2010, for Mays Finance Corporation to record the purchase of receivables without recourse.

  Prepare necessary adjusting entries at december

Prepare necessary adjusting entries at December 31 to record amortization required by the events above.

  What is the meaning of numbers

Suppose that spot and futures prices of the underlying asset when hedge is initiated are $3.10 and $2.50 respectively, What is the meaning of above numbers

  What is enterprise P-B ratio of ABC

In the income statement it reported $560 million in sales. The 90 million shares of the firm traded at $8 each. What is enterprise P/B ratio of ABC

  What is the amount of the first coupon payment your firm pay

What is the amount of the first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is currently 6.6%

  What are the ethical issues in this situation

All the owners know about and approve the depreciation policy. What are the ethical issues in this situation

  This case and solution were prepared by karen collins

This case and solution were prepared by Karen Collins, Lehigh University

  Describe the challenges faced and provide recommendations

Discuss the challenges faced and provide recommendations on how to overcome these challenges. Support your views/arguments with research findings

  Managerial and financial accounting

Write a 700- to 1,050-word paper in which you differentiate between managerial and financial accounting.

  Discuss likely accounting-based reasons which contribute to

the press report carried the following news item general motors ford and chrysler are expected to post losses on

  What retirement plan are contributions to a simple ira made

His employer establishes a SIMPLE IRA for each employee's retirement. What retirement plan are contributions to a SIMPLE IRA made

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd