Question - Read the following article in Journal of Accounting on how to account for share-based compensation. Pay particular attention to the explanations of the different options pricing models that accountants may use.
Eaton, Tim V. and Prucyk, Brian R. (April 2005) No Longer An Option. Journal of Accountancy.
Discuss the following questions in your initial post:
What are your thoughts on the different pricing models?
Do you see any potential issues with these models? Explain your answer.
Does one have a better predictive value over another? Explain your answer.
What ethical issues are involved with using these models? How could regulation mitigate these issues?