CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the statement(s) is (are) incorrect?

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.

User Contributed Comments 1

User Comment
richmondo No sure how important sfas 123 is for 2010
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