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.
There are numerous journal entries that are recorded in a company’s accounting records
throughout the life of an equity compensation award to reflect the impact of that award on the company’s financials. This article illustrates the entries used to record some of the most common stock plan transactions.