M7 - Stock Compensation Flashcards
1
Q
Stock options outstanding are reduced at what date? (grant or exercise)
A
Exercise Date
The stock options outstanding account is INCREASED at the date of grant.
2
Q
When is a public entity required to measure the cost of employee services in exchange for an award of equity interests, based on the FMV of the award?
A
Equity instruments issued for employee services are to be valued at the DATE OF GRANT
3
Q
Is compensation expense relative to stock options recognized regardless of whether the option is exercised or not?
A
Yes
Total Compensation Expense
Divided by Years
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Compensation in each year
