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NASPP Essentials

Award Modifications: Key Considerations
May 05,2020

A chart comparing the key considerations for common types of modifications to equity awards.

Accounting for Equity Compensation in the United States
Dec 31,2019

Written for readers without an accounting background, this article provides a summary of the treatment of stock compensation under US GAAP. Also includes highlights of differences between the US GAAP and IFRS with respect to stock compensation.

Latest Developments

FASB Clarifies Accounting for Modifications of Share-Based Payments
May 23,2017

The FASB recently issued ASU 2017-09 to clarify which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The ASU becomes effective for all entities for fiscal years beginning after December 15, 2017.

FASB Issues Modification Accounting ASU
May 11,2017

On May 10, 2017, the FASB issued ASU 2017-09, which clarifies when modification accounting is required under ASC 718.

FASB Proposes Amendments to Modification Accounting under ASC 718
Nov 21,2016

This development covers the FASB's exposure draft of a proposed modification to ASC 718 that is intended to clarify when an amendment to an existing equity plan or award is subject to modification accounting under the standard.

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Implications of Modifying Underwater Share Options
Apr 01,2009

Many companies, knowing that out-of-the-money, or underwater, share options can affect the morale and retention of key employees, are considering whether and how to modify outstanding awards. Companies exploring strategies should understand their accounting implications as well as the business, organizational, and regulatory concerns that are the context for the strategies. This edition of Defining Issues describes the accounting implications of the more common approaches and some basic factors that should be considered when a company tailors a strategy to its specific circumstances.

Cancellations and Modifications of Underwater Stock Options Require Careful Consideration
Nov 23,2008

As a result of declines in employer stock prices, companies may consider strategies intended to maintain value or provide alternative incentives associated with employee share-based awards that are "under water" (i.e., the award's exercise price is greater than the current market price of the stock). Careful consideration should be given to the accounting for such strategies. This HRS Insight discusses the accounting for various strategies that may be considered and provides practical examples for each strategy.

Discretionary Anti-dilution Adjustments in Equity Compensation Plans May Lead to Unanticipated Compensation Charges
Jun 06,2006

Major accounting firms recently have interpreted the guidance in FAS 123R in a manner that could lead to significant unanticipated compensation charges in connection with equity restructurings. Common antidilution adjustments that had no accounting consequences under APB 25 and FIN 44 could result in substantial additional compensation expense under FAS 123R if they are done on a permissive, rather than mandatory, basis.

Accounting for Accelerating Service Conditions of Performance Awards
Dec 03,2020
Barbara Baksa

How to account for the waiver/removal of service conditions from a performance award in connection with termination of employment--explained in fewer than 75 words.

Optimizing Equity Awards in a Down Market
Oct 08,2020
Jennifer Namazi

Insights into creative accounting approaches companies can use to restore broken incentives and insulate against future market shockwaves.

Accounting for Cash Settlement of Equity Awards
Jul 21,2020
Barbara Baksa

Paying out options or awards in cash? Here's how to account for the payout, explained in fewer than 75 words.

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Revisiting Your Equity Plans in the Wake of COVID-19
Jun 17,2020

How can companies rebuild value in their equity plans and incentivize employees in the wake of immense losses of value in company stock and potentially significant changes to their organization? 

Navigating Equity Plan and Award Changes After the TCJA and IRS Notice 2018-68
Oct 24,2018

Detailed guidance on applying the amendments to 162(m)

Breaking Up Is Hard to Do: Executives, Terminations, and Equity Compensation
Apr 23,2013

Everything you need to know about departing executives and their stock compensation!


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The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.


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