CFA Practice Question

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CFA Practice Question

If awards vest automatically when an employee retires, FAS 123 (R) requires

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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