Without referring to your notes.... statements, currently, referring, director, employee

sabaruch

A firm grants employee stock options to a director. The director receives 100,000 options with a strike price of $10 per share. The shares currently trade at $8 in the market. The firms financial controller has valued these options using a BSM model and the model is telling him the options are worth $4 each.

FASB has issued guidance on how to record the granting of these options on the firms financial statements.

How would they be recorded before, and after FASB issued this guidance.