Page 3 - 20. COMPILER QB - INDAS 102

31.03.2020 Profit and Loss account Dr. 15.38
To Liability for SARs 15.38
(Being Expense liability for stock appreciation rights
recognised)
31.03.2021 Profit and Loss account Dr. 17.02
To liability for SARs 17.02
(Being expenses liability for stock appreciation rights
recognized)

Working Notes:
Calculation of expenses for issue of stock appreciation rights without modification of service period:

1. For the year ended 31st March 2018
= Rs. 210 x 400 awards x 75 employees x 1 year /4 years of service

= Rs. 15,75,000
2. For the year ended 31st March 2019

= Rs. 220 x 400 awards x 75 employees x 2 years /4 years of service - Rs. 15,75,000 previous recognised
= Rs. 33,00,000 - Rs. 15,75,000 = Rs. 17,25,000

3. For the year ended 31st March 2020
= Rs. 215 x 400 awards x 75 employees x 3 years/4 years of service - Rs33,00,000 previously recognised

= Rs. 48,37,500 - Rs. 33,00,000 = Rs. 15,37,500
4. For the year ended 31st March, 2021

= Rs. 218 x 400 awards x 75 employees x 4 years / 4 years of service – Rs48,37,500 previously recognised
= Rs. 65,40,000 – Rs. 48,37,500 = Rs. 17,02,500

Journal entries in the books of P Ltd (with modification of service period of stock appreciation rights)
(Rs in lakhs)
Date Particulars Debit Credit

31.03.2018 Profit and Loss account Dr. 15.75 15.75
To Liability for SARs

(Being expenses liability for stock
appreciation rights recognised)
31.03.2019 Profit and Loss account Dr. 28.25 28.25
To Liability for SARs

(Being expenses liability for stock
appreciation rights recognised)
31.03.2020 Profit and Loss account Dr. 20.50 20.50

To Liability for SARs
(Being expenses liability for stock
appreciation rights recognised)

20. 2