Stock option plans provide employees the option to purchase: (a) a specified number of shares of the firm’s stock, (b) at a specified price, (c) during a specified period of time. One of the most controversial aspects of accounting for stock-based compensation is how the fair value of stock options should be measured. Describe the general approach to measuring fair value.

Q: What kind of option can be used to incentive CEOs? Discuss the difference between stock option…

A: CEO play and major role in achieving the goal of company and help the company and achieve its…

Q: Based on this topic reading answer the following questions in your discussion post. (Note address…

A: 1. The major recommendations of the stock compensation pronouncement are top five officers of…

Q: share-based payment

A: Upon issue of shares for payment to employees, the expense account should be debited and share…

Q: Explain and provide examples of how variations in the prevalent interest rate affects market value…

A: Hi, since you have asked multiple questions, I will answer the first one, as per the guidelines.…

Q: Design a forward contract on a stock with a particular delivery price and delivery date as a…

A: To generate an offsetting forward position, a synthetic forward contract utilities call and put…

Q: How is basic EPS different from diluted EPS? When calculating diluted EPS, how does the treasury…

A: EPS stands for earning per share that is used to measure the profitability of a company. It is…

Q: How is it possible for an employee stock option to be valuable even if the firm’s stock price fails…

A: Employee stock option is an instrument granted to the employees of the company (mostly to the…

Q: elated to a change in market conditions B. It can be changed to reflect the rise or fall in the…

A: International Accounting Standards Board defines the cash value to be an amount that an account will…

Q: A discount given to employees for the purchase of shares is recognized as a/n ____________…

A: To determine, whether the transaction is to be settled in cash or in equity shares. Equity settled…

Q: Which of the following is not a characteristic of a noncompensatory stock option plan? O The plan…

A: Non compensatory stock option plans are those plans in which substantially all full time employees…

Q: Noncompensatory stock option plans have all of the following characteristics except a. participation…

A:

Q: Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock…

A: OPTION(B) Both statements are correct   ESOP is a system under which the employees of a company are…

Q: available-to-sell stock versus a held-to-maturity stock

A: Available-to-sell stock is a type of security that can be bought and sold before maturity.…

Q: If an individual investor buys or sells a currently outstanding stock through a broker, this is a…

A: The given statement is False.

Q: In general, the accounting for stock option plans and other share-based payment plans must reflect…

A: Stock Option Plan Basically stock option plan which was taken the initiatives by the management to…

Q: purchase of shares

A: A discount given to employees for the purchase of shares is recognized as a/n ____________…

Q: A ______ is an option to purchase shares of a company's common stock at a specified price during a…

A: Definitions: Warrant: These are security that allows you the right to buy the common stock, not the…

Q: Write a brief definition for each of the following terms: Fair value. Stock options.

A: 1. Fair value:- Fair value is also called like a market value.  Fair value is a term with several…

Q: Compensation expense must be adjusted during the service period to reflect changes in the fair value…

A: Compensation costs are the costs that an employer must repay to an employee as a benefit when the…

Q: Which of the following is true about stock- based compensation? (check all that apply) Stock-based…

A: A stock option is an employee compensation scheme in which, company’s equity stocks are offered to…

Q: Which of the following is NOT a characteristic of a non-compensatory employee stock option plan…

A: The employee stock option plan is provided to the employees as reward for their working in the…

Q: When should the compensation expense be recorded as a result of share options granted by the…

A: Compensation expense on share options granted by the enterprise to its employees will  be recognise…

Q: Explain how “at-the-money” stock options (i.e., options that have no intrinsic value) which are part…

A: At-the-money option: It is a situation where the price of the option is equal to the current price…

Q: The exercise price and market price of stock under a fixed compensatory stock option plan are equal…

A: Employees Stock option Plan Employees stock option plan which is provided to the employees working…

Q: 4. Why do companies give stock-based compensation (e.g. stock options) to employee? Please describe…

A: Stock-based compensation (also known as Share-Based Compensation or Equity Compensation) is a method…

Q: The buyer of a Call Option has the obligation to purchase shares of the underlying stock. True False

A:

Q: How is it possible for an employee stock option to be valuable even if the firm’s stock price fails…

A: employee stock options is a type of equity compensation to their employees like options and…

Q: When a company holds between 20% and 50% of the outstanding stock of an investee, which of the…

A: The correct answer is:-  The investor should use the equity method to account for its investment…

Q: Sl acquired shares that are not part of a held for trading portfolio. The shares are listed on a…

A: Derivatives products or shares which held by company the company doesn't want that volatility in…

Q: Stock option (and other share-based) plans often specify a performance condition or a market…

A: Stock option: Stock option refers to the benefit in the form of an option that is provided to the…

Q: What date or event does the profession believe should be used in determining the value of a stock…

A: Stock options give the right to purchase a stock from an organization at a fixed price. The market…

Q: A stock option plan may or may not be intended to compensate employees for their work. The…

A: Definition:   Stock options: Stock options are the stock-based compensation plans provided in the…

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.