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Financial Reporting for Equity Compensation

The Principles of Accounting for Equity Awards

Accurate and timely financial reporting is essential for equity compensation, with direct bottom-line impact to a company's earnings per share, compliance with regulatory agencies, and shareholder relations. However, the path toward preparing sound financial disclosures can be challenging and varied by award type, with differing expense recognition and tax accounting and other complexities.  

This program provides a comprehensive tutorial on the accounting principles you need to understand to confidently avoid mistakes that could have legal and financial repercussions.

Topics covered include: 

  • An overview of ASC 718 as revised, including valuation, measurement of expense, and expense attribution 
  • Tax accounting for equity awards 
  • Computing basic and diluted earnings per share under ASC 260 
  • Required disclosures for public companies relating to stock plans 
  • Proxy reporting disclosures and tables

Ideal Development Opportunity For


  • Accounting and financial reporting professionals
  • Corporate tax professionals
  • Other individuals involved in or responsible for accounting for equity compensation

Program Level



Participants should have an understanding of the features, characteristics, and tax treatment of stock options and full value equity awards.

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4 expert-led modules


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On-demand to fit your schedule

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Quizzes to test your skills and apply your knowledge

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Certificate and transcript awarded upon completion

Learning Modules

Module 1 - Intro to Financial Reporting and ASC 718

Get a comprehensive overview of company financial statements, including the balance sheet, income statement, and cash flow. You’ll then learn the ins-and-outs of ASC 718, including expense calculations, attribution, accounting for performance awards, and how these numbers flow into the financial statements. 

2 hours of continuing education for CEPs.

Module 2 - Tax Accounting and Earnings Per Share

A deep dive into income tax accounting for equity compensation, including booking deferred tax assets, tax provisions, and understanding permanent versus temporary differences. You’ll also get an overview of basic earnings per share (EPS) and learn how to calculate diluted EPS using the treasury stock method. 

2.00 hours of continuing education for CEPs 

Module 3 - Advanced Topics

Take the next step with advanced accounting topics, including modification of equity awards, corporate transactions (both business combinations and spinoffs), advanced performance awards, disclosures relative to performance award metrics, ESPPs, and MD&A disclosures.

2.00 hours of continuing education for CEPs 

Module 4 - Proxy Reporting

An in-depth examination of proxy reporting, including its various components, executive and director compensation disclosures, disclosures relative to late Form 4 filings, and equity plan proposals. 

2.00 hours of continuing education for CEPs