Question

Over what period of time should compensation cost be allocated?

Short answer

The period during which an employee is expected to offer support in return for stock-based compensation. It very well may be unequivocal, understood, or determined, contingent upon the conditions of the award.

Step-by-step solution

Identification of the period in which compensation cost to be allocated

Stock compensation is a technique utilized by organizations to reward their workers involving stock options as a way for the organization's staff and its leaders partaking in the benefits and development of the organization. It alludes to money related development given to a person in return for their administration. In work environment, remuneration is procured by representatives.

The determination of compensation cost in relation to the employees  

An employee who possesses an investment opportunity should know whether the stock is vested, and the stock would hold its full worth regardless of whether the representative quits working with the organization. A representative is granted the offer if they meet specific necessities like the complete return of the load of the organization comparative with a specific index.