Ditsapelo Unlimited on 1 January 2 0 2 4 granted 3 0 0 share appreciation rights (
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Question:
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Ditsapelo Unlimited on January granted share appreciation rights SARs to each of its
employees on the condition that they continue to work for the entity for two years. At January
the entity expects that of those employees will leave each year.
During employees leave Ditsapelo Unlimited. The entity expects that the same number will
leave in the second year.
Employees are expected to leave during
The SARs vest on December and can be exercised during and On December
of the eligible employees exercised their SARs in full. The remaining eligible employees exercised
their SARs in full on December
The fair value and intrinsic value of each SAR was as follows:
Reporting date FV per SAR Intrinsic value per SAR
December P
December P
December P P
December P P
Required:
a Calculate the amount to be recognised as a remuneration expense in the statement of profit or loss,
together with the liability to be recognised in the statement of financial position, for each of the two
years to the vesting date. marks
b Calculate the amount to be recognised as a remuneration expense and reported as a liability in the
financial statements for each of the two years ended December and
marksQuestion Three
marks
Ditsapelo Unlimited on January granted share appreciation rights SARs to each of its
employees on the condition that they continue to work for the entity for two years. At January
the entity expects that of those employees will leave each year.
During employees leave Ditsapelo Unlimited. The entity expects that the same number will
leave in the second year.
Employees are expected to leave during
The SARs vest on December and can be exercised during and On December
of the eligible employees exercised their SARs in full. The remaining eligible employees exercised
their SARs in full on December
The fair value and intrinsic value of each SAR was as follows:
Reporting date
FV per SAR
Intrinsic value per SAR
December
P
December
P
December
P
P
December
P
P
Required:
a Calculate the amount to be recognised as a remuneration expense in the statement of profit or loss,
together with the liability to be recognised in the statement of financial position, for each of the two
years to the vesting date.
marks
b Calculate the amount to be recognised as a remuneration expense and reported as a liability in the
financial statements for each of the two years ended December and
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