Statement 1: If market exists, fair value is estimated by applying an option pricing model. Statement 2: If the share options vest immediately, the total fair value of options is charged to an expense account with a corresponding credit to equity. A. Both statements are correct. B. Both statements are incorrect. C. Statement 2 is only correct. D. Statement 1 is only correct.

Statement 1: If market exists, fair value is estimated by applying an option pricing model. Statement 2: If the share options vest immediately, the total fair value of options is charged to an expense account with a corresponding credit to equity. A. Both statements are correct. B. Both statements are incorrect. C. Statement 2 is only correct. D. Statement 1 is only correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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