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Basic Question 7 of 14

Companies can use either a front-loaded or straight-line method to recognize an earnings charge for graded vesting awards. This choice applies to:

I. Service-based vesting awards.
II. Performance-based awards with non-stock-price goals.
III. Performance-based awards with stock price goals ("market-based").

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MasterD Page 150, Graded Vesting
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Your review questions and global ranking system were so helpful.
Lina

Lina

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.