Under the fair value method of accounting for stock options, firms must value of stock options on the
A) grant date.
B) intrinsic date.
C) measurement date.
D) fair value date.

Question

Quizplus · Accepted Answer

Under the fair value method of accounting for stock options, firms must value stock options on the grant date. This is the date when the company grants the options to its employees or other individuals. The fair value of the options on the grant date is used to determine the compensation expense that the company should record each period until the options are exercised or expire.

Under the Fair Value Method of Accounting for Stock Options