Compensation expense related to employee stock option plans is to be measured by the excess of the
A) option price over the fair value of the stock at the date the options are granted.
B) fair value of the stock over the option price at the date the options are exercised.
C) option price over the fair value of the stock at the date the options are exercised.
D) fair value of the stock over the option price at the date the options are granted.

Question

Quizplus · Accepted Answer

Compensation expense for stock options is measured by the fair value of the stock over the option price at the grant date, as per accounting standards like FASB ASC Topic 718.

Compensation Expense Related to Employee Stock Option Plans Is to Be