Compensation expense resulting from a compensatory stock option plan (CSOP) is generally recognized
A) in the period of exercise.
B) at the grant date.
C) in the periods in which the employee performs the service.
D) over the periods of the employee's service life to retirement.

Question

Quizplus · Accepted Answer

Compensation expense resulting from a compensatory stock option plan (CSOP) is generally recognized in the periods in which the employee performs the service, which is typically the vesting period. The expense is recognized based on the fair value of the options on the grant date and is recognized as the employee performs the service necessary to earn the options.

Compensation Expense Resulting from a Compensatory Stock Option Plan (CSOP)