Stock-based compensation plans may increase the inherent risks related to the accounting and disclosure requirements.

Question

Quizplus · Accepted Answer

Stock-based compensation plans typically involve complex accounting and disclosure requirements, which can increase the risk of inaccuracies or misstatements in financial reporting. This can result in additional scrutiny from regulators and stakeholders, and may also have implications for the company's reputation and financial performance.

Stock-Based Compensation Plans May Increase the Inherent Risks Related to the Accounting