- 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
Companies can use either a front-loaded or straight-line method to recognize an earnings charge for graded vesting awards. This choice applies to:
II. Performance-based awards with non-stock-price goals.
III. Performance-based awards with stock price goals ("market-based").
I. Service-based vesting awards.
II. Performance-based awards with non-stock-price goals.
III. Performance-based awards with stock price goals ("market-based").
Correct Answer: I
The choice applies only to awards with graded vesting based solely on service.
User Contributed Comments 1
| User | Comment |
|---|---|
| MasterD | Page 150, Graded Vesting |