A public limited company, has granted 100 share appreciation rights to each of its 1,000 employees in January 1, 20x4. The management feels that as of December 31, 20x4, 90% of the awards will vest on December 31, 20x6. The fair value of each share appreciation right on December 31, 20x4 is P10. What is the fair value of the liability to be recorded in the financial statements for the year ended, December 31, 20x4?

On January 1, 20x1, ABC Co., acquired 60% interest in XYZ Inc., for P2 million cash. ABC Co., incurred transaction costs of P100,000 in the business combination. ABC Co., elected to measure Non-Controlling Interest (NCI) at NCI's proportionate share in XYZ Inc., identifiable net assets. The fair value of XYZ's identifiable net assets and liabilities at the acquisition date were P6,000,000 and P3,500,000 respectively. How much is the goodwill, gain on bargain purchase)?

Answer rating: 100% (QA)

1 Calculation of the fair value of the liability for share appreciation rights SARs Number of employ... View the full answer