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When recognizing compensation under a stock option plan, unanticipated forfeitures are treated as:A. A change in accounting principle.B. A loss.C. An income item.D. A change in estimate.

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Answer: The correct answer is "D. A change in estimate.".

Explanation: When recognizing compensation under a stock option plan, unanticipated forfeitures are treated as a change in estimate.

They are treated as a change in the estimate, all those unanticipated forfeitures, as a consequence of recognizing compensation under a stock option plan.

User Martin Algesten
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