The NASPP Blog
May 27, 2020
For this week's blog entry, I continue my series on how to account for modifications to equity awards-explained in 75 words or less. Today's topic is acceleration of vesting upon termination of employment (or service).Can you explain the accounting treatment in 75 words or les...
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The NASPP Blog
Jun 23, 2020
This week, I return to my series on how to account for modifications to equity awards-explained in 75 words or less. Today's topic is cancellation of equity awards for no consideration.It is unusual that equity awards are canceled for no consideration, but sometimes executives...
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The NASPP Blog
Jul 21, 2020
This week, I return to my series on how to account for modifications to equity awards-explained in 75 words or less. Today's topic is settling equity awards in cash.When equity awards are settled in cash, the accounting treatment will vary depending on whether it is the vested...
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The NASPP Blog
Jun 02, 2020
For this week's blog entry, I continue my series on how to account for modifications to equity awards-explained in 75 words or less. Today's topic is repricing stock options.Repricings differ from the modifications I have discussed thus far in that the primary change is to the...
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The NASPP Blog
Dec 03, 2020
This week, I return to my series on how to account for modifications to equity awards-explained in 75 words or less. Today's topic covers modification to the service conditions of performance and market-conditioned awards.Performance and market-conditioned awards are often sub...
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The NASPP Blog
May 19, 2020
Here's the situation: you've got an equity award in which vesting is conditioned on non-market targets (i.e., targets other than stock price, market cap, or TSR) and the targets are not achievable. The company takes one of two actions: modifies the targets to make them achieva...
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The NASPP Blog
Jun 09, 2020
I started this series on modifications by discussing how modifications to non-market performance conditions are accounted for. Today I return to the topic of performance awards, to focus on modifications to market conditions.Understanding Market ConditionsA market condition is...
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The NASPP Blog
Jul 07, 2020
It's time to return to my ongoing series on how to account for award modifications. Today's topic is modifications to extend the time to exercise options when employees terminate employment. This one is kind of a doozy.This modification is similar to a repricing in that it doe...
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