Under the fair value method of accounting for stock options,firms must value stock options on the:
A) grant date
B) intrinsic date
C) measurement date
D) fair value date

Question

Quizplus · Accepted Answer

According to the fair value method of accounting for stock options, firms must value stock options on the grant date. This means that the fair value of the options at the time they are granted to employees must be estimated and recorded as an expense on the financial statements. This expense is typically spread out over the vesting period of the options.

Under the Fair Value Method of Accounting for Stock Options,firms