Middleton Co. granted 200 share appreciation rights to each of the 1,000 employees on January 1, 2014. The management estimated that 90% of the awards will vest on December 31, 2018. The fair value of each share appreciation right on December 31, 2016 is P15. What is the fair value of the Liability for the share appreciation rights on the end of the year?

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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Middleton Co. granted 200 share appreciation rights to each of the 1,000 employees on January 1, 2014. The management estimated that 90% of the awards will vest on December 31, 2018. The fair value of each share appreciation right on December 31, 2016 is P15. What is the fair value of the Liability for the share appreciation rights on the end of the year?

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