Accounting for stock compensation: 5 things you need to know

Although the FASB simplified the accounting for stock based awards, it’s still a complex area of accounting. In this episode, PwC partner Heather Horn and director Nicole Berman go back to the basics and discuss five things you should know about accounting for stock compensation awards, including:

• 3:35 - How to determine the grant date and why it’s so important
• 7:12 - The balance sheet classification of awards (liability vs equity)
• 10:20 - The different types of vesting conditions
• 12:46 - Expense attribution, and graded vesting features
• 14:45 - The related tax accounting considerations and plan design considerations

About our guest

Nicole Berman is a Director in PwC's National office advising the Firm’s partners and clients on accounting for complex transactions related to revenue recognition and employee compensation matters, including stock-based compensation, pensions, OPEB, and restructurings, under both US GAAP and IFRS. She helps formulate the Firm's views and positions on new financial reporting pronouncements and assess the technical merit of FASB and IASB proposals.

About our host

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Chapters

• 3:35 How to determine the grant date and why it’s so important
• 7:12 The balance sheet classification of awards (liability vs equity)
• 10:20 The different types of vesting conditions
• 12:46 Expense attribution, and
• 14:45 The related tax accounting considerations