Question

On which of the following dates is a public entity required to measure the cost of employee services in exchange for an award of equity interests (stock options) based on the fair market value of the award?a. Date of grant
b. Date of restriction lapse
c. Date of vesting
d. Date of exercise

Answer 1

Answer:

Option a.

Explanation:

The public entity is required to measure the cost of employee services in exchange for an award of equity interests on the date of grant to measure compensation expense as on that date, the employer gives a resource of value to the employee.

The grant date refers to the date on which an employer and an employee discuss the terms and conditions associated with the award to be given to the employee by the employer.

Option a. is correct.