Tham khảo tài liệu 'accountants’ handbook special industries and special topics 10th edition_14', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | APPLICATION OF FASB STATEMENT NO. 123 37 41 COMPARISON OF COMPENSATION COST RECOGNIZED UNDER FASB STATEMENT NO. 123 AND APB OPINION NO. 25 Assume the following for stock compensation awards made by Company A a public company Stock price at date of grant January 1 2000 40 Expected life of options 6 years Risk-free interest rate Expected volatility in stock price 30 Expected dividend yield Vesting schedule for options 100 at end of third year Options expected to vest 5 000 forfeited each year 285 000 Estimated fair value of each option 15 Stock price at December 31 2002 60 Fair value calculated using an acceptable pricing model. Fixed Stock Option Award On January 1 2000 Company A grants 300 000 stock options to officers and other employees with a maximum term of 10 years and an exercise price equal to the market price of the stock at date of grant. APB Opinion 25 FASB Statement No. 123 Compensation cost recognized Year 2000 0 1 425 000 Year 2001 0 1 425 000 Year 2002 0 00 0 1 425 000 Total 0 4 275 000 Performance Stock Award On January 1 2000 Company A also grants 30 000 restricted shares to certain employees. The restrictions lapse at the end of three years if certain annual earnings per share targets are met during the three-year period. For purposes of this example assume the earnings per share targets were met during the three-year period and the restrictions lapsed on December 31 2002. APB Opinion 25 FASB Statement No. 123 Compensation cost recognized 1 800 000 1 200 000 Exhibit Comparison of compensation cost recognized under FASB Statement No. 123 and APB Opinion No. 25. feited because of failure to meet vesting requirements are excluded from determination of compensation cost. In certain circumstances due to the terms of a stock option or other equity instrument it may not be feasible to reasonably estimate the fair value of a stock-based award at the grant date. For example the fair value of a stock option whose exercise price adjusts by a
