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.
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:
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