Current GAAP requires companies to measure the fair value of stock options at the grant date.

Question

Quizplus · Accepted Answer

This statement is true. According to current GAAP (Generally Accepted Accounting Principles), companies are required to measure the fair value of stock options at the grant date. This value should then be recognized as an expense over the vesting period of the options. This requirement is aimed at providing more transparency and accuracy in financial reporting.

Current GAAP Requires Companies to Measure the Fair Value of Stock