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March 18, 2026The Accounting Review

Valuation of Stock Option Contracts.

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Authors

JWJerry J. WeygandtUniversity of Iowa

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Implication

Investigation of stock option valuation strategies, indicating a need for updated accounting methods.

Key Points

  • The aim is to explore how stock options can be valued for accounting purposes and to suggest improved methods.
  • Review of existing literature on stock option valuation
  • Analysis of current accounting practices for compensation expense
  • Examination of nonqualified and qualified stock options
  • Valuation models provide reliable estimates for nonqualified stock options.
  • Qualified stock options present additional complexities needing further research.
  • A high degree of confidence in approximating option values is achievable, despite the lack of an exact formula.

Cite This Study

Jerry J. Weygandt (1977) studied this question.

synapsesocial.com/papers/69ba43694e9516ffd37a4a8dhttps://doi.org/10.2308/tar-4493462
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Economic Incentives as a Substitute for Detailed Accounting Requirements: The Case of Compensation Value of Stock Options.1994
  2. 2Valuation of Executive Stock Options and the FASB Proposal.1991
  3. 3Estimating the "Fair Value" of Employee Stock Options with Expected Early Exercise.1994
  4. 4Extending the Method of Accounting for Stock Appreciation Rights to Employee Stock Options.1994 · 1 citations
  5. 5Towards a Contract Basis of Valuation in Accounting.1978