Brisa SA has granted its executives share appreciation rights settled in cash, with a four-year service condition. At the end of year two, the total fair value of the rights expected to vest, measured at that date, is 560,000 (case data). Case convention: the elapsed share of the vesting period is 50 %. The liability recognised at the previous closing is 110,000 and no cash has yet been paid. Compute the liability at the closing date, then the expense for the year.
- Total fair value of the rights expected, at the closing date (case data)
- 560,000
- Elapsed share of the vesting period (case convention)
- 50 %
- Liability recognised at the previous closing
- 110,000