- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 8. Topics in Long-Term Liabilities and Equity
- Subject 5. Financial Reporting for Post-Employment and Share-Based Compensation Plans
CFA Practice Question
If awards vest automatically when an employee retires, FAS 123 (R) requires
B. partial recognition of expense based on the ratio of vesting period and how long the employee expects to work until retirement.
C. no recognition of expense.
A. full recognition of expense when the employee becomes eligible to retire even if the employee remains employed.
B. partial recognition of expense based on the ratio of vesting period and how long the employee expects to work until retirement.
C. no recognition of expense.
Correct Answer: A
This differs from prior practice.
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