- CFA Exams
- CFA Level I Exam
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 14. Employee Compensation: Post-Employment and Share-Based
- Subject 5. Accounting for Stock-Based Compensation
CFA Practice Question
Which of the statement(s) is (are) incorrect?
II. SFAS 123 prohibits corporations from reflecting in their financial statements the difference between option value at the grant time and that at the exercise time.
III. APB 25 requires companies to disclose in the notes to financial statements what option expenses would have been using the fair value method.
I. Companies electing to adopt SFAS 123 are required to use the intrinsic-value-based method to record the option value as an expense.
II. SFAS 123 prohibits corporations from reflecting in their financial statements the difference between option value at the grant time and that at the exercise time.
III. APB 25 requires companies to disclose in the notes to financial statements what option expenses would have been using the fair value method.
A. I and II
B. I and III
C. I, II and III
Explanation: I. fair value method.
III. SFAS 123.
III. SFAS 123.
User Contributed Comments 1
| User | Comment |
|---|---|
| richmondo | No sure how important sfas 123 is for 2010 |