At the end of its fiscal year, December 31, 2020, Javan Limited issued 200,000 share appreciation rights to its officers that entitled them to receive cash for the difference between the fair value of its shares and a pre-established price of $12. The fair value fluctuated as follows: December 31, 2021, $15; December 31, 2022, $11; December 31, 2023, $21; and December 31, 2024, $19. An options pricing model determined that the fair value of all 200,000 SARs fluctuated as follows: December 31, 2021, $780,000; December 31, 2022, $0; December 31, 2023, $1,850,000; and December 31, 2024, $1,400,000. The required service period is four years, and the exercise period is three years from the end of the service period. The company recognizes the SARs in its financial statements. Assume that Javan follows IFRS. 

Instructions 

a. Prepare a schedule that shows the amount of compensation expense that is allocable to each year that is affected by the share appreciation rights plan. 

b. Prepare the entry at December 31, 2024, to record compensation expense, if any, in 2024. 

c. Prepare the entry at January 1, 2025, assuming that all 200,000 SARs are exercised on that date, and that fair value of the shares on that date is $19. 

d. If the firm accounted for SARs using ASPE, would the calculation of compensation expense for 2022 reflect the drop in fair value of the shares to below the pre-established price of $12 per share? Why or why not?