In short
Stock appreciation rights give an employee the increase in a company's share price over a set price, paid in cash or in shares, without the employee buying any stock.
Key takeaways
- If settled in cash, they are liabilities remeasured at fair value each period until settled.
- If settled in shares, they are equity awards measured at grant-date fair value.
- Cost is recognized over the service period, with catch-up adjustments for liability awards.
Where it's tested
BAR: Stock Compensation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Employees receive stock appreciation rights that will be settled in cash. How are they measured after the grant date?