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Basic Question 14 of 14
Companies are required by FAS 123 to expense Employee Stock Purchase Plans if purchase price discount is less than 5% or less of stock price. True or False?
User Contributed Comments 1
| User | Comment |
|---|---|
| quanttrader | if discount is =+5% then expense, otherwise no need. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
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.