To enable CPAs and other financial professionals to understand and apply the FASB's accounting requirements for stock-based compensation. You'll discover how other companies have implemented the rules, learn to avoid the pitfalls and be able to identify ongoing issues that have important tax and accounting implications. Plus, you’ll gain practical experience by working through a number of typical problems and their solutions.

• Background, history and objectives of share-based compensation
• Recent trends in plans to align company objectives with employee performance
• Dodd-Frank considerations
• Types of vesting conditions
• Overview of ASC Topic 718 rules
• Earnings per share
• Employee stock purchase plans
• Comparison of US GAAP with IFRS
• Accounting for dividends on unvested restricted stock awards
• Practical tips for accounting for SBC
• ASC Topic 718 disclosures
• Private company reporting
• Disclosure requirements and impact on cash flow statements under US GAAP
• Accounting for modifications and examples
• Option pricing models and inputs
• Auditor and SEC concerns

To enable CPAs and other financial professionals to understand and apply the FASB's accounting requirements for stock-based compensation. You'll discover how other companies have implemented the rules, learn to avoid the pitfalls and be able to identify ongoing issues that have important tax and accounting implications. Plus, you’ll gain practical experience by working through a number of typical problems and their solutions.

DETAILED LEARNING OBJECTIVES

• Understand the primary purposes and goals of stock-based compensation programs

• Identify the key factors and events that influence stock-based compensation trends, including public perception and legislation

• Recognize the limitations and requirements of IRC Section 162(m) related to executive compensation deductibility

• Identify between compensatory and non-compensatory stock purchase plans, including the tax implications of each

• Recognize the disclosure requirements under ASC 718 for stock-based compensation awards

• Identify the advantages and conditions of restricted stock awards (RSAs) and restricted stock units (RSUs)

• Identify the classification of stock awards as equity or liability under ASC 718

• Recognize the accounting treatment for forfeitures and their impact on expense recognition

• Understand the implications of vesting conditions on stock-based awards and performance alignment

• Differentiate between various types of equity compensation, such as stock appreciation rights (SARs), RSAs, RSUs, and ESPPs

• Identify the differences between qualified and nonqualified stock options, including tax implications and eligibility requirements

• Identify the primary tax considerations under IRC Section 409A for deferred compensation plans

• Understand the role of stock-based compensation in aligning employee incentives with company performance metrics

• Analyze the accounting treatment of stock appreciation rights (SARs) under ASC 718

• Describe the significance of grant date accounting and the measurement of fair value for stock-based awards

• Differentiate between the accounting treatment of equity-classified and liability-classified awards

• Identify the implications of forfeitures on expense recognition and financial reporting

• Recognize the conditions under which restricted stock awards (RSAs) are subject to §83(b) elections

• Understand the disclosure requirements for private and public companies under ASC 718

• Evaluate the advantages of performance-based vesting conditions in equity compensation plans

• Assess the impact of stock-based compensation on diluted earnings per share (EPS) calculations

• Identify the corporate governance standards relevant to stock-based compensation plans

• Discuss how clawback provisions under Dodd-Frank are applied to executive compensation

• Understand the practical expedients available to nonpublic entities for stock-based compensation accounting

• Reocgnize how performance metrics, such as revenue growth and EPS, influence stock-based award vesting
 

• Background, history and objectives of share-based compensation
• Recent trends in plans to align company objectives with employee performance
• Dodd-Frank considerations
• Types of vesting conditions
• Overview of ASC Topic 718 rules
• Earnings per share
• Employee stock purchase plans
• Comparison of US GAAP with IFRS
• Accounting for dividends on unvested restricted stock awards
• Practical tips for accounting for SBC
• ASC Topic 718 disclosures
• Private company reporting
• Disclosure requirements and impact on cash flow statements under US GAAP
• Accounting for modifications and examples
• Option pricing models and inputs
• Auditor and SEC concerns