Employer's expense for stock options is typically recognized earlier for book than tax purposes.

Name: Employer's expense for stock options is typically recognized earlier for book than tax purposes.
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This is because financial accounting standards (such as GAAP and IFRS) require companies to expense stock options on their income statement as soon as they are granted or vested, whereas for tax purposes, the expense is only recognized when the options are exercised or sold.

Employer's Expense for Stock Options Is Typically Recognized Earlier for Book