Skip to content.docx - Skip to content Financial Accounting Cost Accounting Q&A Short questions Home MCQs Accounting Terms and Definitions Search Stock

Skip to content.docx - Skip to content Financial Accounting...

This preview shows page 1 - 3 out of 6 pages.

Skip to content Home Financial Accounting Cost Accounting Q & A Short questions MCQs Accounting Terms and Definitions Search Stock appreciation rights (SAR) Treasury Stock / By rashidjaved Share Tweet Pin Email
Image of page 1
Share As an alternative to presenting employees with shares or warrants , many companies grant them stock appreciation rights. Under these arrangements, the employees do not have to buy shares but are rewarded just as if they owned them. For example, an executive might be entitled to receive a cash payment after four years equal in amount to the increase in the value of 10,000 shares of stock. As an alternative, part or all of the compensation might be paid with shares. In accounting for such stock appreciation right (SAR) agreements, the company should accrue a liability and recognize expense over the term of service. At the end of this service period, the liability will be settled with cash or stock or both.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 6 pages?

  • Winter '17
  • FOng

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes