CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 71 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 71
Topic #: 1

ST granted 1,000 share appreciation rights (SARs) to its 100 employees on 1 December 20X7. To be eligible, employees must remain employed for 3 years from the grant date.In the year to 30 November 20X8, 10 staff left and a further 20 were expected to leave over the following two years. The fair value of each SAR was $12 at 1 December 20X7 and $15 at 30 November 20X8.

What is the accounting entry to record this transaction for the year to 30 November 20X8?

ADr Staff costs $350,000,Cr Non-current liabilities $350,000

BDr Staff costs $350,000,Cr Equity $350,000

CDr Staff costs $280,000, Cr Non-current liabilities $280,000

DDr Staff costs $280,000, Cr Equity $280,000

Show Suggested Answer

Suggested Answer: D

by Ressie at Jul 07, 2023, 08:42 AM

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17 days ago

I think the answer is A.

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