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Basic Question 2 of 14

If awards vest automatically when an employee retires, FAS 123 (R) requires

A. full recognition of expense when the employee becomes eligible to retire even if the employee remains employed.
B. partial recognition of expense based on the ratio of vesting period and how long the employee expects to work until retirement.
C. no recognition of expense.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain issues associated with accounting for share-based compensation;

explain how accounting for stock grants and stock options affects financial statements, and the importance of companies' assumptions in valuing these grants and options.

CFA® 2025 Level II Curriculum, Volume 2, Module 11.