Under FAS 133 executive stock options must be accounted for as short call options.

Question

Quizplus · Accepted Answer

Under FAS 133 (Accounting for Derivative Instruments and Hedging Activities), executive stock options are not specifically accounted for as short call options. FAS 133 primarily deals with derivative financial instruments and hedging activities, not the accounting for executive stock options, which are typically addressed under different accounting standards such as FAS 123R (Share-Based Payment).

Under FAS 133 Executive Stock Options Must Be Accounted for as Short