Accounting for Stock-Based Compensation

Author: Kelen Camehl

This on-demand course provides an overview of the accounting and reporting requirements with respect to stock-based compensation for an entity’s employees. This includes an overview of the history of the accounting requirements that have developed into the current-day Codification and the way in which stock compensation is classified, measured, and recorded in an entity’s financial statements. The course also addresses the effects of modifications as well as financial statement disclosure requirements. This course is updated through the issuance of ASU No. 2018-17 and reflects the amendments from this ASU.

Presented by Miles Hutchinson.

Publication Date: January 2019

Designed For
CPAs and accounting professionals

Topics Covered

• Identifying the Grant Date
• Determining the classification
• Liability arrangements
• Instruments subject to share repurchase features
• Substantive liabilities
• Employer Choice of Settlement
• Recognition principle
• Performance conditions
• Service conditions
• Market conditions
• Impacts on Fair Value
• Determining Grant Date Fair Value
• Identification of the requisite service period
• Cost recognition
• Modifications
• Presentation
• Disclosure
• Income tax considerations

Learning Objectives

• Identify the grant date of a stock-based compensation arrangement
• Determine the appropriate balance sheet classification of a stock-based compensation arrangement
• Identify the primary recognition principles used to assess the fair value of a stock-based compensation arrangement
• Differentiate between market, performance, and service conditions
• Recognize the extensive disclosure requirements for stock-based compensation arrangements

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
Basic knowledge of accounting

Advance Preparation
None