Final answer:
Compensation expense for share-based awards contingent on specific market conditions is recognized regardless of whether those conditions are met, reflecting the effort expended. Therefore correct option is B
Step-by-step explanation:
When share-based awards are contingent on the achievement of specific market conditions, compensation expense is recognized regardless of whether the conditions are met. This accounting principle aligns with the idea of effort, where individuals and entities are recognized for the effort and costs associated with potential achievement, irrespective of the actual outcome. In the context of share-based compensation, the expense is recognized over the requisite service period, reflecting the consumed cost of employee services as they fulfill their effort towards meeting these market conditions.