BE 19-8 Performance-based options

BE 19-8 Performance-based options

Refer to the situation described in BE 19-6. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 5% by the end of 2013. What action will be taken to account for the options in 2012 and thereafter?

 ANSWER KEY Brief Exercise 19-8 Refer to the situation described in BE 19-6. Suppose that Farmer initially estimates that it is not probable the