Reference no: EM132626282
Uryu Corporation granted 1,000 share appreciation rights to its 200 key employees on December 31, 2016. The share appreciation rights has a price of P40 per share on December 31, 2016. Market prices of the shares were as follows:
December 31, 2017 P46 per share
December 31, 2018 P55 per share
December 31, 2019 P60 per share
The share appreciation rights were granted as compensation for key employees who stayed in the Company over a three-year period beginning January 1, 2017.
On December 31, 2017, 30 employees left the Company and management expects 20 more employees will leave the Company at the end of the vesting period.
On December 31, 2018, 25 employees left the Company and management expects 10 more employees will leave the Company at December 31, 2019.
On December 31, 2019, 20 employees left the Company. The remaining employees exercise the shares.
Question a. What is the compensation expenses for December 31, 2019?
Question b. What is the accrued salaries payable for December 31, 2018?
Question c. What amount of compensation expense should Uryu recognize as a result of this plan for the year ended December 31, 2017?
Question d. What is the compensation expenses for December 31, 2018?
Question e. How much cash will be paid by the Company as a result of application for the share appreciation rights?