Doves Morgan $($LTD$)$ has granted $600$ share appreciation rights $($SARs$)$ to each of its $1000$

employees on $1$ st July $2015.$ The management feel that as at $31$ st July $2016,$ the financial year$-$

end of Doves Morgan $($LTD$),80\%$ of the awards will vest on $31$ st July $2017.$ The fair value of

each share appreciation right $($SAR$)$ on $31$ July $2016$ is P$30.$ On the $31$ st July $2017$ the actual

number of SARs that vest was $90\%$ of the total rights and the fair value of each SAR on this

date is P$40.$