The Financial Accounting Standards Board (FASB)stipulates that companies must use an option valuation model to estimate the fair value of any option grants and then deduct this value when calculating profits.

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This statement is true. The FASB requires companies to use an option valuation model to determine the fair value of option grants and then deduct this value when calculating profits. This is intended to help ensure that the financial statements of companies accurately reflect the economic reality of their option grants.

The Financial Accounting Standards Board (FASB)stipulates That Companies Must Use