On January 1, 20X7, Signal Entity (SE) granted 500 cash-settled share appreciation right to each of its eight member executive team. For an executive member to receive the share appreciation right, the executive must remain in service for the next three years. Cash is payable at the end of three years based on the share price of SE's shares on such date. Fair value of SAR is as follows: 12/31/20X7 = $15; 12/31/20X8 = $17 and 12/31/20X9 = $20. SE will pay cash on 12/31/20X9 to redeem the vested SARs based on the share price of SE's shares on this day. In 20X7, SE estimated that one member is expected to leave in 20X8. In 20X8 one member leaves and SE estimates that additional one will leave in 20X9. In 20X9 two members leave.
-Calculate the liability for each year.

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The Answer of On January 1, 20X7, Signal Entity (SE) granted 500 cash-settled share appreciation right to each of its eight member executive team. For an executive member to receive the share appreciation right, the executive must remain in service for the next three years. Cash is payable at the end of three years based on the share price of SE's shares on such date. Fair value of SAR is as follows: 12/31/20X7 = $15; 12/31/20X8 = $17 and 12/31/20X9 = $20. SE will pay cash on 12/31/20X9 to redeem the vested SARs based on the share price of SE's shares on this day. In 20X7, SE estimated that one member is expected to leave in 20X8. In 20X8 one member leaves and SE estimates that additional one will leave in 20X9. In 20X9 two members leave.
-Calculate the liability for each year.

On January 1, 20X7, Signal Entity (SE) Granted 500 Cash-Settled