Consider the following statements regarding the accounting treatment of Employee Stock Options:
- Employee Stock Options are considered a part of equity.
- The fair value of the options granted is recognized as an expense over the vesting period.
- Options granted under employee stock option plans are not recorded on the financial statements until exercised.
Which of the above statements are correct?
1
1 only
2
2 and 3 only
3
1 and 2 only
4
1 and 3 only
5
1, 2, and 3