Current GAAP Recommends That the Fair Value Method Be Used

question 5

Essay

Current GAAP recommends that the fair value method be used to account for compensatory stock option plans.From a conceptual point of view, this method is an improvement over the intrinsic value method.
Required:
Explain how the fair value method is an improvement over the intrinsic value method.

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The examination and investigation of phenomena through structured, methodical, and empirical means, often used in scientific and academic research.

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