Under its restricted stock unit $($RSU$)$ plan, Lin Company granted restricted stock units $($RSUs$)$ representing $5$ million of its $$1$ par common shares to certain key executives. At vesting, recipients are given the option to receive the cash equivalent of the number of shares used to value the RSUs. Lin plans to account for these new RSUs in the same manner as described in the company$$s disclosure notes to its financial statements:

Share$-$Based Compensation $($in part$)$

Share$-$based compensation cost for RSUs is measured based on the closing fair market value of the Company$$s common stock on the date of grant $...$ The Company reports paid$-$in capital and recognizes share$-$based compensation cost over the award$$s requisite service period on a straight$-$line basis.

Which of the following is an accurate statement regarding the company$$s policy?