At 1.1.2017, KAZA Bhd grants 80,000 share appreciation rights to employee, with service condition that the employee will still be employed in KAZA for three years. At grant date, KAZA's share price is RM3.00. The rights grants have a life of five years. At 31.12.2019, employee will be received cash by KAZA based on the value of the rights on that date. At the end of years 2020 and 2021, KAZA will pay the further cash to the employee if the rights have appreciated in value. Fair value of the share appreciation rights for the five-years are as follows: Year Share price RM Dividend yield Value of rights % RM 0 3.00 1 0.81 2017 3.60 1.5 1.05 2018 4.20 1.5 1.39 2019 4.80 2 1.67 2020 5.50 2 2.09 2021 6.20 3 2.67

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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POTUTORIAL QUESTION 4.pdf
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Ⓒ File | C:/Users/acer/Documents/UNIVERSITI%20MALAYSIA%20SABAH/SEMESTER%204%20COURSE/BP22603%20FAR%20111/CHAP... Q
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Required:
Calculate the amount recognised as expenses and amount disclosed as equity.
QUESTION 4
At 1.1.2017, KAZA Bhd grants 80,000 share appreciation rights to employee, with service
condition that the employee will still be employed in KAZA for three years. grant date,
KAZA's share price is RM3.00. The rights grants have a life of five years. At 31.12.2019,
employee will be received cash by KAZA based on the value of the rights on that date. At the
end of years 2020 and 2021, KAZA will pay the further cash to the employee if the rights have
appreciated in value. Fair value of the share appreciation rights for the five-years are as
follows:
Year
Share price RM
Dividend yield
%
Value of rights
RM
0
3.00
1
0.81
2017
3.60
1.5
1.05
2018
4.20
1.5
1.39
2019
4.80
2
1.67
2020
5.50
2
2.09
2021
6.20
3
2.67
Required:
a) Calculate the amount that shall be recognized for the employee service in each of the five-
year period.
b) Show the journal entry in each year.
re
اد
I
ח
Transcribed Image Text:← = POTUTORIAL QUESTION 4.pdf C 2 of 3 Q 5 X PDF Topic 4 Employee Benefits.pdf x | + Ⓒ File | C:/Users/acer/Documents/UNIVERSITI%20MALAYSIA%20SABAH/SEMESTER%204%20COURSE/BP22603%20FAR%20111/CHAP... Q [E + Q ** | CD Page view | A Read aloud | Add textDraw Highlight Erase 5 Required: Calculate the amount recognised as expenses and amount disclosed as equity. QUESTION 4 At 1.1.2017, KAZA Bhd grants 80,000 share appreciation rights to employee, with service condition that the employee will still be employed in KAZA for three years. grant date, KAZA's share price is RM3.00. The rights grants have a life of five years. At 31.12.2019, employee will be received cash by KAZA based on the value of the rights on that date. At the end of years 2020 and 2021, KAZA will pay the further cash to the employee if the rights have appreciated in value. Fair value of the share appreciation rights for the five-years are as follows: Year Share price RM Dividend yield % Value of rights RM 0 3.00 1 0.81 2017 3.60 1.5 1.05 2018 4.20 1.5 1.39 2019 4.80 2 1.67 2020 5.50 2 2.09 2021 6.20 3 2.67 Required: a) Calculate the amount that shall be recognized for the employee service in each of the five- year period. b) Show the journal entry in each year. re اد I ח
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