equity instruments . sfas no . 123r eliminates the ability to account for share-based compensation transactions using the intrinsic value method under accounting principles board ( apb ) opinion no . 25 , accounting for stock issued to employees , and instead requires such transactions be accounted for using a fair-value-based method . the company will recognize stock-based compensation expense on all awards on a straight-line basis over the requisite service period using the modified prospective method