FASB has provided relief on grant date requirements for stock option so companies can set the grant date as the date that:

A. The key terms and conditions are communicated to employees.
B. It is approved by the board or compensation committee.
C. The award starts to vest.

Correct Answer: B

The approval date is allowed as long as the key terms and conditions are expected to be communicated to the employee within a relatively short time period after the approval date.