When changes are made to the terms of existing equity awards, the accounting treatment depends on whether the modifications are considered beneficial to the employees or not. If the modifications are favorable, such as a reduction in the vesting period or an increase in the number of shares granted, the entity would recognize the increase in fair value resulting from the modification, adjusting the expense over the remaining vesting period. If the modifications are unfavorable to the employees, like an increase in the vesting period or a decrease in the number of shares, the entity would not reverse any previously recognized expense. Therefore, statement A and C are both not entirely accurate representations of how modifications to share-based payment awards are accounted for. The correct accounting treatment aligns with statement B, which states that the entity records both the increase in fair value from the modification date and the amount based on the grant date fair value of the original equity instruments.