Which method must be used under IFRS to account for employee stock options?
A)Intrinsic value of options.
B)Time value of options.
C)Market value of the shares.
D)Fair value of the options.

Question

Quizplus · Accepted Answer

Under IFRS, the fair value method must be used to account for employee stock options. This means that the company must estimate the fair value of the options on the grant date using an appropriate pricing model, taking into account factors such as the exercise price, expected volatility, and expected term of the options. The fair value of the options is then recognized as an expense over the vesting period of the options, with a corresponding increase in equity.

Which Method Must Be Used Under IFRS to Account for Employee