Random Information Flashcards
Contingent Liability
A potential liability resulting from a past event for which a future independent event will determine if an OUTFLOW of economic benefits is required
Contingent Asset
A potential asset resulting from a past event for which a future independent event will determine if an INFLOW of economic benefits is required
Share Appreciation Rights (SARs) - Compensation expense
= FV x % expected to vest x proportion of vesting period
SAR - if redeemed
Dr SAR Liability
Cr Cash
SAR - if expired
Dr SAR Liability
Cr Compensation Expense
Share Options - Compensation Exp
= FV at grant date x % expected to vest x proportion of vesting period
Dr Compensation Exp
Cr Contributed Surplus - Share Options
Share options - exercised
Dr Cash
Dr Contributed Surplus - share options
Cr Common Shares
Share Options - expired
Dr Contributed Surplus - Share options
Cr Contributed surplus - expired share options
Vesting Date
date the options become exercisable
Vesting Period
period between vesting date and expiry date
Share options impact?
a company’s net income
