Q:126

Q:127
Share Appreciation Rights

2005 500 x 610 x 4.30 x 1/3 = $ 437,167

Answer is B BK 7.1

Q:128
Share Option Schemes

2005/06 500 x 8 x 12 x 1/2= $ 24,000

2006 500 x 8 x 12 x 2/2 = $ 48,000

Expense for 2006 - 48,000 - 24,000 = $ 24,000

Dr Expenses and Cr Equity

 Answer is A BK 7.2

Q:129

Q:130
Share Based Payments BK 7.4

Change is estimate of expected employees - treated as a change in accounting estimate

Q:131
Share Option Schemes

2004 1,000 x (300 - 20 - 15) x 1.40 x 1/2 = $ 185,500

Answer is B BK 7.6
Q:132

Q:133
Share Appreciation Rights

2004 25 x (3,500 x 55%) x 18 x 1/3 = $ 288,750

Dr Expenses and Cr Liabilities

Answer is B BK 7.7

Q:134
Share Option Schemes

Dr Expenses and Cr Other Components of Equity

Answer is D BK 7.8
Q:135
Share Option Schemes

B is out as no of leavers are adjusted for every year

C is out as the expense is spread over the vesting period and not the exercise period
D is out as there's no specific requirement to have a separate asset

A is correct as in a cash settled scheme the FV is adjusted for at every reporting date
E is correct as in a share option scheme the FV at grant date is used

A & E are the correct answers BK 7.10

Q:….
Share Option Schemes

B is out as the expense is spread over the vesting period and not the total period of employment
C is out as once the vesting conditions are satisfied the options can be exercised - not necessarily a payment

A is correct as once vesting conditions are fulfilled the options can be granted
D is correct as expense is spread over the vesting period
E is correct as a minimum period of service is an example of a vesting condition

A, D & E are the correct answers BK 7.9

d of employment
- not necessarily a payment