The compensation associated with restricted stock units (RSUs) under a stock award plan is:
A) The book value of an unrestricted share of the same stock times the number of shares represented by the RSUs.
B) Allocated to expense over the service period which usually is the vesting period.
C) The estimated fair value of a share of similar stock times the number of shares represented by the RSUs.
D) The book value of a share of similar stock times the number of shares represented by the RSUs.

Question

Quizplus · Accepted Answer

The compensation associated with RSUs is recognized as an expense over the service period, which typically aligns with the vesting period. This approach matches the expense recognition with the period over which the employee provides service in exchange for the award.

The Compensation Associated with Restricted Stock Units (RSUs) Under a Stock