Compensation expense resulting from a performance-type plan is generally
A) determined at the measurement date.
B) recognized in the period of the grant.
C) allocated to the periods subsequent to the measurement date.
D) recognized in the period of exercise.

Question

Quizplus · Accepted Answer

Compensation expense resulting from a performance-type plan is generally determined at the measurement date, which is the date at which the performance criteria are met. The expense is then recognized in the period in which the performance criteria are met, even if the grant was made in a prior period. Therefore, options B, C, and D are incorrect.

Compensation Expense Resulting from a Performance-Type Plan Is Generally