XYZ Limited grants 100 cash share appreciation rights (SARS) to each of its 500 employees on 1 January 2007, on condition that the employees continue to work for XYZ Limited until 31 December 2009.

During 2007, 35 employees leave. The Company estimates that a total of 95 employees will leave during the period.

100.0

During 2008, 40 employees leave and the Company estimates that a total of 75employees will leave during the period.

During 2009, 22 employees leave.

At 31 December 2009, 150 employees exercise their SARs. Another 140 employees exercise their SARs at 31 December 2010 and the remaining 113 employees exercise their SARs at the end of 2011.

The fair values of the SARs for each year in which the liability exists are shown below, together with the intrinsic values at the dates of exercise.

Fair value

GH

2007 14.40

2008 15.50

2009 18.20

2010 21.40

2011 25.00

Required:

Intrinsic value

GH

15.00 20.00

Calculate the amount to be recognised in the profit or loss for each of the five years ended 31 December 2011 and the liability to be recognised in the statement of financial position at 31 December for each of the five years.