Which of the following is a false statement regarding an employee compensatory or non compensatory stock option/purchase plan?

1. Compensation expense for a compensatory plan is determined on the grant date and allocated over the service period of the eligible employees

2. when a noncompensatory plan fails to meet the U.S. GAAP requirements, it is usually classified as a compensatory plan

3. employees under a noncompensatory plan are allowed to extend their initial option exercise period

4. The expiration of stock options has no effect on the compensation expense recorded under a compensatory plan