P10. TOPPIC: SHAREHOLDERS EQUITY

Problem 10

On January 1, 2017, Foster Co. established a share appreciation rights plan for the executives. The plan entitled them to receive cash at any time during the next 4 years for the difference between the market price of the ordinary share and a pre-established price of P20 on 60,000 share appreciation rights or SARs. On December 31, 2019, 20,000 SARs are exercised by executives. Current market prices of the share are as follows:

January 1, 2017 25 per share

December 31, 2017 28 per share

December 31, 2018 35 per share

December 31, 2019 30 per share

Q1. What amountodcompensation expense should be recognized for 2017?

Q2. What amount of compensation expense should be recognized for 2018?

Q3. What amount should be recognized as accrued liability for share appreciation rights of December 31, 2019?