Accounting for Stock Options
25 Pages Posted: 21 Oct 2008
This technical note discusses accounting for stock options. It includes a discussion of the business considerations in issuing stock options, the evolution of accounting for stock options, accounting for stock options using the intrinsic-value method and the fair-value method under U.S. GAAP, income-tax implications of stock options, and accounting for stock-option repricing. The note provides illustrative examples.
Keywords: accounting, inflation, compensation, employee
JEL Classification: J33, A23, M41, M44, H24, H25
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