Resources - Simple List
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Employee Stock Purchase Plans and the Calculation of Basic and Diluted Earnings per Share
August 13, 2017
Earnings per share (EPS) is the most common and complex performance measurement that a publicly held company presents in its quarterly and annual reports (Josef Rashty and John O’Shaughnessy, “Restricted Stock Units and the Calculation of Basic and Diluted Earnings per Share,” The CPA Journal, June 2011, pp. 40–45). Guidance for calculating and reporting EPS can be found in two parts of the Accounting Standards Codification (ASC): Topic 260, “Earnings per Share,” which provides for the calculation and presentation of the basic and diluted EPS, and Topic 718, “Compensation—Stock Compensation,” which provides for certain unique characteristics of stock compensation that impact the EPS calculation. -
Grant Date of Equity Awards under FAS 123R and FSP No. 123(R)-2
August 13, 2017
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FASB Guidance: Grant Date, Tax Accounting, and Market Valuations
August 13, 2017
The FASB proposed new Staff Positions on determining the grant date of a share-based payment and on a simplified transition method for computing the available excess tax benefits in additional paid-in capital at the time Statement 123R is adopted, 1 and the SEC’s economists reported their analysis of using market instruments to value employee stock options.2 This edition of Defining Issues summarizes the new guidance. -
Estimating Stock Price Volatility
August 13, 2017
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Estimating Expected Term for Stock Options
August 13, 2017
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Determining FAS 123R Expense: Straight-Line vs. Accelerated Attribution
August 13, 2017
By now many of us have come to grips with FAS 123R's requirement for publicly traded companies to estimate the fair value of employee stock options at their grant date and to subtract this value from earnings. Determining the fair value is a process that has been receiving the most attention, but once we have the fair value, how do we determine expense? -
Definition of Grant Date Under FAS 123(R)
August 13, 2017
Statement 123(R), Share-Based Payment, provides that share-based payments exchanged for employee services and classified as equity awards generally are measured at their fair value on the grant date. -
Cancellations and Modifications of Underwater Stock Options Require Careful Consideration
August 13, 2017
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. -
Applying the Two-Class EPS Method to Share-Based Payments
August 13, 2017
Companies that issue share-based payments that entitle employees to receive dividends even if the awards do not vest may report lower earnings per share under the requirements of a new FASB Staff Position. -
Accounting for Stock Compensation Under FASB ASC Topic 718
August 13, 2017
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 718, Stock Compensation (formerly, FASB Statement 123R), requires generally that all equity awards granted to employees be accounted for at “fair value.” -
FASB Issues Final Update to ASC 718
August 07, 2017
On March 30, 2016, the FASB issued Accounting Standards Update 2016-09, which finalizes the FASB's updates to simplify the operation of ASC 718, including changes to the accounting treatment of the tax effects of stock compensation, forfeitures, and share withholding. -
FASB Issues Modification Accounting ASU
June 27, 2017
On May 10, 2017, the FASB issued ASU 2017-09, which clarifies when modification accounting is required under ASC 718. -
IRS Updates Golden Parachute Audit Guide
February 10, 2017
In January 2017, the Internal Revenue Service ("IRS") released an updated Golden Parachute Payments Audit Technique Guide ("ATG") that covers the examination of golden parachutes under Internal Revenue Code ("IRC") Sections 280G and 4999. -
IRS Publishes Audit Techniques Guide for Golden Parachute Payments
February 10, 2017
In January 2017, the Internal Revenue Service made public its Golden Parachute Payments—Audit Techniques Guide for Large Businesses. The Guide is intended for internal use for IRS agents auditing companies and high net worth individuals. However, in recent years, IRS has shared this and other guides with the public to (i) make known its positions on certain issues, and (ii) help companies avoid the traps that could lead to problems with IRS. -
Assessing Risk in Compensation Incentive Plans
February 10, 2017
This article provides a framework from which to evaluate whether compensation incentive programs, including equity incentives, encourage appropriate and not excessive levels of risk-taking among employees. The article discusses risk in the context of pay mix, performance measures, performance and payout curves, goal setting certification of performance, and participant communications. -
Communicating Stock Compensation: Approaching the Process Strategically
February 04, 2017
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Application of Hart-Scott-Rodino Act to Equity Compensation
February 04, 2017
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Types of Compensation Subject to Section 409A
February 04, 2017
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Tips for a Successful Stock Plan Proposal
February 04, 2017
Tips for creating a proxy proposal to seek shareholder approval for a new employee stock plan or increase in share reserves.