CERTYNEX IFRS ACADEMY

A management controller writes: "For our employee option plan, settled in shares, we measure the fair value of the options at each closing date and adjust the cumulative expense accordingly." What is the error?

The fair value should have been measured at the exercise date of the options, when their final value is known to the employees, and not at the plan's grant date.

For an equity-settled plan, the fair value of the instruments is measured at the grant date, not at each closing date.

The options should have been valued at intrinsic value at each closing date, without using a valuation model.

The fair value should have been measured at the date the year's accounts are finalised, the balance sheet reference date.