Stock-Based Compensation Part 1: An Overview – Happy People, Compliant Financials
In this first episode of a two-parter, we review ASC 718, Stock Compensation, and accounting for these potential difference-makers for your talent acquisition and retention.
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Show Notes
We all know why companies use stock-based compensation – to supercharge their talent strategy and incentivize performance and loyalty. But as Embarkers Adam Olsen, Sarah Cage Richter, and James Durrenburger discuss in this first episode of a two-part series, there are a few areas that can make accounting for them pretty tricky, including:
- Which stock-based arrangements fall under the scope of the guidance in ASC 718?
- Measuring the awards using the fair-value based method
- Vesting considerations and conditions
- Classifying awards on the balance sheet
For more information on lease modifications and remeasurements under stock-based compensation:
- Best Practices for Choosing & Maintaining a Stock Comp Plan
- How to Choose the Right Stock Comp Accounting Software
- Comparing The Best Stock Compensation Software Solutions
- ASC 718, Compensation–Stock Compensation
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