Accounting for Stock-Based Compensation
When a company issues some form of stock-based compensation to its employees, this triggers a number of rules regarding how to account for the transaction. This course clarifies the situation for the accountant by describing the treatment of equity-based compensation. The valuation and expense recognition for these stock awards is discussed, along with the related concepts of employee stock ownership plans and employee share purchase plans. In addition, the views of the Securities and Exchange Commission are summarized. In short, Accounting for Stock-Based Compensation
should be your key source of information when senior management starts to contemplate these types of compensation arrangements.
Format
PDF Course
Level
Overview
Duration
2 Hours
Course Information
Author: Steven Bragg
Course Number: AC1093
Learning Objectives
- Recognize the basic concepts of stock-based compensation, such as the implicit service period, the derivation of compensation costs, and the classification of an employee.
- Identify the accounting for unused stock options.
- Specify the methods used to derive the fair value of stock-based compensation.
- Recognize the reasons for creating an employee stock ownership plan.
- State the rules that qualify an employee share purchase plan for special accounting treatment.
- Specify the positions taken by the Securities and Exchange Commission related to stock-based compensation.
Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Accounting
Prerequisites: None
Advance Preparation: None
Latest Review Date: June 2024
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
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