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On January 2, Year 1, Zelman granted 15,000 stock options to its senior employees. The options vest in equal installments over three years, with 1/3
On January 2, Year 1, Zelman granted 15,000 stock options to its senior employees. The options vest in equal installments over three years, with 1/3 of the options vesting at the end of each year (graded vesting). Zelman used the option-pricing model to calculate the fair value of $6 for each option on the grant date. The company assumes that there will be no forfeitures; all 15,000 options will vest. a) What are the compensation expenses in Years 1, 2, and 3 under (1) U.S. GAAP and (2) IFRS
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