Required How wi the scheme be accounted for in the thane statements for he years ended June a Rea sar ‘December 2010 [G45 (arks 06) For tne last many years, Mis. ABC Limted nas been facing the problem of tumover of staf n fordero overcome fos stzston management ofthe company has ioauced many pas 12 wn ine oyaty of the sa On January 01, 2010, the company granted 200 cash share 3pprecitionnghs (SAR) to each ots 500 empoyees proved tat they woud reman wi Ihe ‘company utt December 31,2012. Fotowing is he relevant data as regards tis scheme: Assume at ‘+ During 2010, 30 empoyees leave. The entity estimates that a tuner 5O employees woul eave aurng 2017 and 2012 ‘+ Dunng 2011, 15 empoyees leave. The ently estimates that a futher 45 employees woud leave dung 2012 + During 2012: 50 employees leave. ‘The fa value of one SAR foreach year are shown below (Rs) 2011 1200 2021800 Requires Clcuate the amount tobe recognized as an expense in the Income Statement fr each of he three years ended to December 31 2072 and the habay To be recognized in he Statement of Financial Postion at December 3 foreach ofthe tvee Years ark 06) The Ens4 [1FRS2 58 Tune ‘Gab (Marks 06 ‘Suppose you are the management accountant of U & S Pubishing (Pvt) Ltd. The company has {granted 200 options on its Rs 10 ordinary shares to each ofits Z5Demployees on July 1.2006, ‘The options are conditional upon tne employees beng empoyed by te company until June 30, 2008. Following information is relevant: ‘+ You estimate that ine far vaiue of each option was Ris 40 on July 1, 2005. + In 2006-07, 25 employees lef and another 25 employees were expected to leave in 2007-08 anid 2008-09, + In. 2007-08, 18 employees Je and another 12 employees were expected to leave in 2008-09 ‘+ In 2008.08, 15 employees let Bajum Naqeood ACA Page? AFAR Required: How wil the scheme be accounted for in the financial statements for the years enced June 30,2007, 2008 and 2003? (Marks 06) #see Ean BeBrse-e? — (280 -25-75 ) xdeorte » by GocGur 8 (28> 28-181) Doom lee x Ys $33,233 SBB333 Lobeeao Gob L67 Be-Guace (2S0—-2S-18-1S )x 2 x wx 1536000 ee(3 [iFRS-2 ser ‘Aprii2012 @-4b (Marks 10) | Pak Electronics manufactures electronic items, which has a major domestic market share. However, ‘during the las! few years due to entrance of two new companies manufacturing similar items there has been a cutthroat competition. In order to maintain its market share the directors of the company have come up with a new Scheme to motivate its Sales team, According to this Scheme, each member of the sales team consisting of 50 persons has been offered 25,000 shares options on January 01, 2012 In order to avail benefis of the scheme each empioyee was required to meet his/her annual sales targets as well as to remain with the company for the next three (03) years. Pak Electronics prepares its financial statements on December 31. At the grant date the value of ‘each share option was Rs 5. Assume that following events relating to the scheme will take place ‘during the next three (03) years: In 2012; ‘= Three (03) sales persons leave the company and another five (05) are expected to leave during the next two (02) years, In 2012: ‘= Three (03) sales persons leave the company and another four (04) are expected to leave during the next one (01) year in 2014: '* Two (02) sales persons leave the company, Required: Show the effects af the above Scheme in the Income Stalement and Statement of Financial Position of the company for the three (03) years.Eeyuity Gia Be (60-3 -$) x 25e0e* Sal I2Stee0 LL Woocc ila “4D x2SecoaS ~ Ye 3333333 18832323 (se B-3-Y Worx r3y 8. 2Se609 M6667(2 WFRS-2 SBP February 2013 | Q-4a (Marks 08) Management of Star Company is worried about excessive turnover of employees. The HR Director has suggested to grant 250 cash share appreciation rights (SARS) to each of its 400 employees subject fo condition ‘Continue entity for three years. The Board approved the proposal from July 1, 2009. The management expects tnat 20 employees will leave each year. During three years following employees left the company, ‘Years | No.of Employees 2009-2010 20, 2010-2011 24 2017-2012 30 ‘On June 30, 2012, 125 employees exercised their rights. The fair value of the share appreciation rights for the year in which a liability éxists are shown below, together with the intrinsic value at the date of exercise: Fair value | intrinsic Value IRS.) (RS) un-70 1250 77.50 Jun-14 14.00 14.50. Jjun-12 16.50 17.00 Required: Calculate the amount to be presented in the statement of financial position and statement of comprehensive income for three years from 2010 to 2012. (Marks 08)1_|IFRS-2 SBP August 2013 | Q-éc (Marks 04) During the year, FMCG launched a new product in the market and expected normal growth as that of existing products. In order to motivate the sales force to achieve the target for three years, the company granted 225 share options to each member of the sales team of 10 employees. At the grant date, the fair value of each option is Rs.25. The grant was based on the condition that the employees remain in service over the next three years and the team sells 80,000 units of product over the three-year period. During second year, the company increased the sales target to 120,000 units after positive feedback from customers and widely acceptance of the product in the market. By the end of third year, only 100,000 units have been sold and the share options do not vest. All employees remained with the company for three years. Required: (i) Explain the accounting treatment of the above transaction under IFRS 2. (Marks 02) (ii) Calculate the amounts to be recognized in the financial statements for each of the three years of the scheme. (Marks 02)es sor maga 698 Te tor aerate ans esc oo ci meres len agsma a 6 fox 2iSrast%s 32.8 lok 22S nrixdy Gand dot Cc 7a a (Goo -26- 44) » BSc + condition Wet ee Saxecinte Be-G BoGare Dold Lis Se FE = 56250 ) Bare (Hee ~20 -24-20) x2 (yoo-20-24-B2 x 2