For Christian Brothers Automotive, when does the company account for ESOP compensation cost?

The Company maintains a leveraged Employee Stock Ownership Plan (ESOP) for eligible employees, for which the Company allocates shares of its own stock to the ESOP Trust each year. The Company accounts for ESOP compensation cost when shares are committed to be released, which may occur before the shares are legally released. Shares that have not been legally released, but that relate to employee services rendered during the accounting period ending before the related debt service payment is made, are considered committed to be released. The Company credits unearned ESOP shares as shares are committed to be released based on the cost of the shares to the ESOP. The Company also charges or credits the difference between the fair value of the shares committed to be released and the cost of those shares to additional paid-in capital. The compensation cost recognized on shares committed to be released is based on the fair value of the shares.

Source: Item 23 — RECEIPTS (FDD pages 76–372)