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Essay on Stock Compensation. Note:you do not need to answer in complete sentences; short...

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Accounting

Essay on Stock Compensation. Note:you do not need to answer in complete sentences; short phrases areokay

1. What accounting standard in 2004caused stock options to decline as the primary source of non-cashcompensation? Why?

2. Does compensation expense fromstock options meet the definition of an expense as discussed inSFAC 6? Why?

3. Do you think compensation expense from stock options shouldbe recognized as an expense? Choose one position, and supportit.

Answer & Explanation Solved by verified expert
3.6 Ratings (487 Votes)
ABP No 25 issued in October 1972 on Accountong for Stock issued to Employees was supersede by SFAS 123 ossued in December 2004 after the manner of recognition of Employee Stock option Compensation expense was changed The latter standard provided that all the stock options issued by public entities to employees must be recognised at    See Answer
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In: AccountingEssay on Stock Compensation. Note:you do not need to answer in complete sentences; short phrases...Essay on Stock Compensation. Note:you do not need to answer in complete sentences; short phrases areokay1. What accounting standard in 2004caused stock options to decline as the primary source of non-cashcompensation? Why?2. Does compensation expense fromstock options meet the definition of an expense as discussed inSFAC 6? Why?3. Do you think compensation expense from stock options shouldbe recognized as an expense? Choose one position, and supportit.

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