Which of the following can be accounted for under the intrinsic value method?
A) share option plan with share appreciation rights
B) fixed share option plan
C) performance-based share option plan
D) all of these

Question

Quizplus · Accepted Answer

All of the share option plans mentioned above can be accounted for under the intrinsic value method. The intrinsic value method requires that the fair value of the options be calculated as the difference between the market price of the underlying shares and the exercise price of the option on the date of grant. This method is used to determine the compensation expense related to share-based payments, which is recognized in the income statement over the vesting period of the options.

Which of the Following Can Be Accounted for Under the Intrinsic