Stock Compensation: Scope, Classification, and Measurement

Entities issue share-based payment awards to a variety of individuals for a variety of reasons. These awards can be issued to employees, members of the board of directors, even vendors. But when are they considered to be issued to employees? And when are they compensatory? Furthermore, why does it matter? What about classification? Additionally, should the entity classify share-based payment awards as equity or liability? And how does that impact the accounting for the award?

This stock compensation CPE course (2.0 CPE) will answer these questions and many more! With a theme of famous witches and wizards, plain english explanations, and plenty of examples, this course will guide you through the magic and mysteries of stock compensation and the requirements of ASC 718.

This course begins by introducing various share-based payment arrangements entered into by entities. After that, you’ll learn about the scope of ASC 718, which will include distinguishing employee awards from nonemployee awards and compensatory plans from noncompensatory plans. Once you learn what’s in-scope of ASC Topic 718, the next step, which is one of the most important, is to classify the award as equity-classified or liability-classified. And finally, we’ll conclude the module by taking a look at the various measurement approaches available to determine the grant-date fair value of awards.

Topics included in this stock compensation CPE course include:

• Introducing share-based payments
• Scope of ASC 718
• Classification of awards as equity or liability
• Overview of measuring awards at their grant date fair value
• Exploration of various pricing models
• Understanding the key inputs into the valuation of awards

So, join us as we take a look at the magical world of share-based payment. This stock compensation CPE course is easy to understand and full of examples, videos, and other interactions to help bring the content of ASC 718 to life.

Interested in group discounts for your team? Contact us to learn more.

 By the end of this course, you should be able to: 

• Recall the various types of share-based payment awards issued by entities 
• Distinguish between awards granted to an employee or a nonemployee
• Recognize the criteria necessary for the share-based payment award to employees to be considered non-compensatory 
• Distinguish share-based payment awards as either equity-classified or liability-classified 
• Identify the six inputs necessary when determining the fair value of awards using various pricing models