Answer-first summary for fast verification
Answer: measured at the fair value as of the grant date and recognized as an expense over the vesting period.
## Explanation Under accounting standards (IFRS 2 and ASC 718): - Share-based compensation is measured at fair value on the grant date - The expense is recognized over the vesting period (the period during which employees earn the right to the shares) - For multi-year vesting periods, the total compensation cost is allocated evenly over each year of the vesting period - This follows the matching principle in accounting **The correct answer is C: measured at the fair value as of the grant date and recognized as an expense over the vesting period.** This is the standard accounting treatment for share-based compensation with vesting requirements.
Author: LeetQuiz Editorial Team
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Share-based compensation with a multi-year vesting period is:
A
not recognized as an expense.
B
recognized as an expense equal to the present value of the estimated share value at settlement date.
C
measured at the fair value as of the grant date and recognized as an expense over the vesting period.
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