Applegate Inc. established a share appreciation rights (SARs) program on January 1, 2017, which entitles executives to

Question:

Applegate Inc. established a share appreciation rights (SARs) program on January 1, 2017, which entitles executives to receive cash at the date of exercise for the difference between the shares' fair value and the pre-established price of $16 on 3,700 SARs. The required service period is two years. The shares' fair value is $18 per share on December 31, 2017 and $28 per share on December 31, 2018. The SARs are exercised on January 1, 2019.
(a) Calculate Applegate's compensation expense for 2017 and 2018 assuming it follows ASPE.
(b) Would the accounting for the SARs program differ if Applegate adopted IFRS?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119048541

11th Canadian edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

Question Posted: