What amount of compensation expense should be recognized

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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, 2017 25 per share

December 31, 2017 28 per share

December 31, 2018 35 per share

December 31, 2019 30 per share

Problem 1: What amount of compensation expense should be recognized for 2017?

Problem 2: What amount of compensation expense should be recognized for 2018?

Problem 3: What amount should be recognized as accrued liability for share appreciation rights of December 31, 2019?

Reference no: EM132531891

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