The IASB Standard on Stock Options (IFRS 2)is Substantially the Same

question 27

Multiple Choice

The IASB standard on stock options (IFRS 2) is substantially the same as U.S.GAAP. How should stock options be accounted for?

• A)Since their value is not determinable until a future date,they are not recorded,but only disclosed in the notes to the financial statements.
• B)A compensation expense is recorded based on the value of the options expected to vest as of the date the options are granted.
• C)An expense is recorded only if a market value for the options exists on the date the options are granted.
• D)The options are recorded as a liability for the value of the stock at the exercise date.

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Definitions:

Groupthink

A psychological phenomenon in which the desire for harmony and conformity within a group results in an irrational or dysfunctional decision-making outcome.

Opinionated Team Leader

A leader who strongly holds and expresses their personal views and beliefs, influencing team dynamics and decisions.

External Threat

Factors or circumstances outside an organization that pose a risk to its stability, success, or survival.

Team Success

The achievement of a group's objectives or goals, often measured by factors such as performance, collaboration, and the attainment of desired outcomes.