Which statement is correct about the accounting for employee stock options?
A)The expense is recorded over the period of vesting.
B)The expense is recorded over the period to expiry.
C)The expense is recorded immediately upon grant date.
D)No expense is recorded for accounting purposes.

Question

Quizplus · Accepted Answer

The accounting standard for employee stock options requires that the expense associated with the options is recorded over the period of vesting. This is to ensure that the expense is matched with the period in which the employees are actually providing services for the company.

Which Statement Is Correct About the Accounting for Employee Stock