The accounting method that is used for share appreciation rights SARs) compensation plans is similar to the accounting procedures that can be used for
A) fixed compensatory share option plans.
B) performance-based share option plans.
C) noncompensatory share option plans.
D) both fixed compensatory and performance-based share option plans.

Question

Quizplus · Accepted Answer

The accounting method used for Share Appreciation Rights (SARs) compensation plans is similar to the accounting procedures for both fixed compensatory and performance-based share option plans. This is because SARs, like these share option plans, involve recognizing compensation expense based on the fair value of the equity instruments granted, which can vary over time similar to the way the value of options can change.

The Accounting Method That Is Used for Share Appreciation Rights