Can someone please tell me the asnwer to this, I have the paper printed but not the solutions and the CFAI website is down. Would also appreciate if you can tell me how its calculated.
872,000 newly granted options at mid-year a price of .39 dollars per. 872,000 multiply by .39 and divide by 2 for mid-year accrual. And that gets further divided by 6 for the vesting schedule (6 years, provided in the vignette)
anyone know why none of the other expenses are included? If they are spread out over the years why isnt part of it included in the expense?
It says in the Question, the portion of expenses earned in 2010 only.
The other data points in the exhibit are just distractors. Under GAAP you just expense whatever was provided in the current period at it’s fair market value based on the vesting schedule.