Under the fair value method, the grant date is the date
A)of the compensation agreement
B)the options are issued
C)the options are exercised
D)the options vest

Question

Quizplus · Accepted Answer

The grant date is the date of the compensation agreement, which is when the company and the employee agree on the terms and conditions of the stock options. This is the date used to determine the fair value of the options, which is then used to calculate the expense that is recognized over the vesting period.

Under the Fair Value Method, the Grant Date Is the Date