Can somebody help me on how to compute this activity about share-based payment 2.

is $5. An entity shall account for a compound instrument as either uirement: C liability or equity, but not both. ions to be aprehensive PROBLEM 2: FOR CLASSROOM DISCUSSION 1. An entity grants 1,000 share appreciation rights (SARs) to each of its 20 employees on January 1, 20x1. Employees earn a cash OBLEM 3: payment equal to the appreciation in the share price between Lightning to January 1, 20x1 and December 31, 20x3. The share SARS) appreciation rights vest on December 31, 20x3. Employee the share Fair value per 2010. The Date % of SARs expected to vest SAR 1/1/x1 95% 100 Date 12/31/x1 96% 112 Jan-08 12/31/x2 98% 117 -Dec-08 12/31/x3 97% 120 -Dec-09 1-Dec-10 Requirements: Provide the entries in 20x1, 20x2 and 20x3 to record compensation expense. Requiremen compensat Use the following information for the next two questions: Adapted) An entity grants 500 share options to each of its 100 employees on January 1, 20x1. The fair value per option on this date is P30. The Thund options vest on December 31, 20x3. The entity expects that only enable 90% of the share options will vest. The tax laws applicable to the betwe entity only allow the intrinsic value of the share options for tax right deduction. The entity's tax rate is 30%. the ri was 2. The intrinsic value of the share options on December 31, 20x1 is P1,200,000. resp cann Requirement: Compute for the tax benefit relating to the share Requirer options to be recognized in (a) profit or loss and (b) other comprehensive income in 20x1. Con Lial 2020/12/21 08:28 daptedChapter 13 697 Share based Payments (Part 2) trument as either The intrinsic value of the share options on December 31, 20x1 is P1,500,000. Requirement: Compute for the tax benefit relating to the share (SARs) to each options to be recognized in (a) profit or loss and (b) other ees earn a cash comprehensive income in 20x1. 3. price between The share PROBLEM 3: EXERCISES 1. Lightning Company granted 5,000 share appreciation rights Fair value per (SARs) to employees for services on January 1, 2008. SAR Employees earn a cash payment equal to the appreciation in the share price between January 1, 2008 and December 31, 100 2010. The share appreciation rights vest on December 31, 2010. 1 12 Date Fair value of each SAR No. of SARs expected to vest 117 1-Jan-08 10 4,500 120 31-Dec-08 12 4,500 31-Dec-09 21 4,750 0x3 to record 31-Dec-10 18 4,850 Requirements: Provide the entries in 20x1, 20x2 and 20x3 to record compensation expense. nployees on (Adapted) is P30. The 2. Thunder Company's grant of 30,000 stock appreciation rights s that only enables key employees to receive cash equal to the difference cable to the between P20 and the market price of the stock on the date each ons for tax right is exercised. The service period is 2008 through 2010, and the rights are exercisable in 2011. The market price of the stock was P25, P28 and P27 on December 31, 2008, 2009, and 2010, er 31, 20x1 respectively. The fair values of the stock appreciation rights cannot be reliably measured. the share Requirements: Compute for the following: (b) other a. Compensation expense recognized in 2008, 2009 and 2010. b. Liability recognized as of December 31, 2008, 2009 and 2010. (Adapted) 2020/12/21 08:28698 Chapter 13 Provide 3. On January 1, 2008, Storm, Inc. granted 80,000 cash shares appreciation rights to the executives on condition that the PROBLEM executives remain in its employ for the next three years. The On Januar entity estimates that the fair value of the stock appreciation appreciati rights at the end of each year in which a liability exists are as the emp] follows: Informati Date Year Fair Value Jan. 1. 20 2008 Dec. 31, 2 2009 2010 Dec. 31, 2 (Adapted) Dec. 31, 2 Requirement: Provide the journal entries in 2008, 2009 and 2010. All of t 20x3. 4. On January 1, 2008, Cement Co. granted 20,000 shares with equal fair value of P30 per share to its key officers, conditional upon the completion of three years' service. By the end of 2009, the Requir share price has dropped to P26 per share. Immediately, Cement Co. adds a cash alternative to the grant, whereby the officer can choose whether to receive 20,000 shares or cash equal to the value of 20,000 shares on vesting date, which is on PROT December 31, 2010. On December 31, 2010, the share price is C P24. (Adapted) Requirements: a. How much is the compensation expense in 2010? b. What is the balance of the liability component of the instrument as of December 31, 2009? c. What is the balance of the liability component of the instrument as of December 31, 2010? d. What is the balance of the equity component of the instrument as of December 31, 2009? 2020/12/21 08:28 e. What is the balance of the equity component of the instrument as of December 31, 2010