Accounting Treatment of Share Options at ABC Corporation

ABC Corporation has granted share options to its employees. Each share option allows the employee to purchase one share of the company's stock at a fixed exercise price of $50. The options vest over four years, meaning that employees can exercise them only after completing four years of service. In the current financial year, ABC Corporation's stock price increased from $40 to $70, and the company recognizes the total compensation expense related to these options based on the fair value of the options at the grant date using an option pricing model.

Which of the following statements about the accounting treatment for these share-based compensation options is true?