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.
On December 16, 2004, the FASB released its new accounting standard for stock-based compensation. This standard supersedes APB Opinion No. 25, requiring companies to recognize an expense for all forms of stock-based compensation.
Deloitte's summary of and observations on ASU 2016-09, including an example of the journal entries for the new tax accounting.
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.
Update to ASC 718: Diluted EPS
Update to ASC 718: Early Adoption
Update to ASC 718: What's Next?
Winning Plays from the Pros
How will ASU 2016-09 change your equity accounting?
Did the "simplification initiative" ultimately simplify?
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