US GAAP Accounting for Share-Based Compensation (2 days)

Course code: 2282

Introduction

This two day course will provide delegates information on the important requirements concerning how to account for share-based compensation. Our specialist instructor will explain clearly and simply with examples, the logic of ASC 718. The course answers questions such as:

  • How to distinguish equity awards from liability awards
  • How to properly document the grant date
  • How to correctly account for share-based instruments including restricted stock, stock options with cliff vesting and graded vesting, non-qualified stock options, incentive stock options and employee stock purchase plans.
  • What valuation model to choose.
  • What issues arise with repricings, modifications, settlements of awards.
  • How to account for deferred tax issues including APIC pools and the interaction of ordinary NOLs and stock option NOLs.
  • How to calibrate expected term and volatility.
  • The significant differences between ASC 718 and IFRS 2.

Topics

  • Introduction to stock based compensation
    • Equity versus liability awards
    • Setting the grant date
    • Types of equity awards (e.g., restricted stock and stock options)
  • Measurement of Fair Value
    • Lattice versus Black-Scholes
    • Obtaining the inputs to the models
    • SAB 107 guidance on expected volatility and expected term
    • Historical versus implied volatility
    • Taking into account current uncertainty in stock prices
  • Recognition of Compensation Costs
    • Explicit and implicit service periods
    • Service, Performance and Market Conditions
    • Cliff vesting versus graded vesting
  • Modification of Awards
    • Repricings
    • Settlements
    • Repurchases
    • Cancellations
    • Modifications of vesting conditions, performance and service conditions
  • Tax Issues
    • Non-qualified Stock Options
    • Incentive Stock Options
    • APIC Pools
  • Special Issues
    • Stock Option NOLs
    • Business Combinations
    • Employee Stock Purchase Plans
  • Disclosures
    • Cash flow statements
    • Income statements
    • Footnotes
  • Earnings per Share
  • Comparison with IFRS 2

Teaching method

  • Group live instruction, examples, group work and open discussions
  • Detailed coverage of ASC 718, with real world examples to illustrate accounting for different types of share based instruments
  • Presentation and discussion of financial statement disclosures
  • Review of real-world financial statements illustrating presentation and disclosures
  • Interactive participation is encouraged
  • All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Prerequisites

Basic understanding of accounting principles. No advance preparation is required for this course.

Course benefits

  • Understand the logic behind the accounting for share-based compensation
  • Comprehend how to distinguish equity from liability awards
  • Learn how to choose the appropriate valuation model
  • Understand the issues in computing expected term and volatility
  • Learn how to account for awards with service, performance or market conditions
  • Become familiar with the accounting for stock options with graded vesting
  • Understand how to account for deferred taxes and track APIC pools
  • Become familiar with recent issues including repricings and modifications
  • Learn how ASC 718 differs from IFRS 2

Who should attend?

Industry controllers, accountants, and finance and human resource professionals looking to solidify their knowledge of the accounting requirements of ASC 718.

CPE / CPD Accreditation

NASBA

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. 


Field of study: Accounting

ICAEW Partner in Learning

IASeminars is proud to have been named as an ICAEW Partner in Learning, working together to offer the ICAEW IFRS Certificate to our clients worldwide. ICAEW (The Institute of Chartered Accountants in England and Wales) is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. CPE certificates obtained from attending IASeminars courses are an ideal way for ICAEW members and others to demonstrate their continuing professional development, provided that the topic is relevant to their learning and development needs.

New York State Board of Public Accountancy

IASeminars is registered with the New York State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 002546. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

Texas State Board of Public Accountancy

IASeminars is registered with the Texas State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 009689. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

In House

To bring this course in-house please contact us and we will be pleased to assist

Course details

Course schedule

There are currently no dates scheduled.
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