Isn’t the solution given here is wrong, as the company issued options , not stock grants , therefore options should be expended over VESTING PERIOD right as in stock grants we expensed it on the basis of SERVICING PERIOD
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It actually depends on the question. The vesting can be immediate or over a future period for Stock options. If the share-based payments vest immediately, ( i.e. no further service periods are required), then the expense is recognized on the grant date. If the awards do not vest until a specified service period is completed/awards are conditional on the achievement of a performance metric, the compensation expense is recognised and allocated over the service period/recognized over the estimated service period.