- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 11. Employee Compensation: Post-Employment and Share-Based
- Subject 5. Accounting for Stock-Based Compensation
CFA Practice Question
According to FASB 123 (R), if the purchase price for an Employee Stock Purchase Plan (ESPP) is 90 percent of fair market value on the grant date, the company does not need to record an earning charge. True or False?
Correct Answer: False
The price has to be at least 95% or higher of the fair market value.
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