When a company issues some form of stock-based compensation to its employees, this triggers a number of rules regarding how to account for the transaction. This course clarifies the situation for the accountant by describing the treatment of equity-based compensation. The valuation and expense recognition for these stock awards is discussed, along with the related concepts of employee stock ownership plans and employee share purchase plans. In addition, the views of the Securities and Exchange Commission are summarized. In short,Accounting for Stock-Based Compensationshould be your key source of information when senior management starts to contemplate these types of compensation arrangements.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the basic concepts of stock-based compensation, such as the implicit service period, the derivation of compensation costs, and the classification of an employee.
Identify the accounting for unused stock options.
Specify the methods used to derive the fair value of stock-based compensation.
Recognize the reasons for creating an employee stock ownership plan.
State the rules that qualify an employee share purchase plan for special accounting treatment.
Specify the positions taken by the Securities and Exchange Commission related to stock-based compensation.
Major Topics
Stock Compensation
Awards Classified as Equity
Awards Classified as Liabilities
Employee Share Purchase Plans
Equity-Based Payments to Non-Employees
Additional Stock-Based Compensation Concepts
Impact on Earnings per Share
SEC's View of Stock-Based Compensation
Stock-Based Compensation Disclosures
