Over the vesting period for employee stock options,current GAAP requires that the entire compensation expense be recognized

Question

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According to current GAAP, the compensation expense related to employee stock options should be recognized equally over the vesting period. This means that the expense should be recognized in each year of the vesting period, rather than being recognized in the first or last year only, or only if the options are exercised. This approach is consistent with the idea that the compensation expense is incurred by the company as the employee renders service over the vesting period, and therefore should be recognized on a systematic basis over that period.

Over the Vesting Period for Employee Stock Options,current GAAP Requires