Equity Compensation Accounting: Sound Decisions in an Uncertain Market

Leveraging FAS 123R to Value and Expense Restructured Compensation

Recording of a 100-minute CPE webinar with Q&A


Conducted on Wednesday, June 24, 2009

Program Materials

This seminar will provide accounting professionals with an in-depth analysis of applicable guidance affecting clients' equity-based compensation and offer best practices for preparing financial reports and booking expenses.

Description

Recent data shows that half of all U.S. companies are reducing use of share-based compensation programs, likely because more than half of public companies' stock options are underwater. Accounting advisors must be prepared to help these companies modify their equity compensation plans.

The accounting implications for changes to incentive and compensation payments are extensive. For example, FAS 123R requires a fair value method for such compensation, and offers guidance on booking and reporting it. But in this market, how can a company reasonably determine "fair value"?

Attention to FAS 123R and other relevant guidance, including SEC Staff Accounting Bulletin No. 110, can only take accounting professionals so far. Best practices and examples of how peers deal with accounting for modified equity compensation are crucial to grasping this murky and problematic area.

Listen as our panel of experts in accounting for share-based compensation equips you for proficient stock option accounting.

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Outline

  1. FAS 123r: “Accounting For Stock Based Compensation”
    1. How to determine fair value in an unstable market
    2. Intrinsic value-based method
    3. Expensing stock options under either method
    4. Financial reporting requirements
  2. Related guidance documents
    1. SEC SAB 110
    2. Other guidance
  3. Practical strategies and recent examples
    1. Best practices for booking expenses
    2. Creating financial reports under all applicable guidance
  4. Emergency Economic Stabilization Act of 2009 provisions
    1. New reporting requirements for TARP recipients
    2. Applicable compensation limits for stock option programs
    3. Projected impact for broader array of companies

Benefits

The panel will give you practical strategies for accounting for modifications to equity compensation plans, including:

  • Strategies for correctly booking expenses for equity compensation programs
  • Leveraging FAS 123R for fair valuation of stock options in the economic crisis
  • Practical approaches to ensure accurate but beneficial financial reports

Faculty

J. Henry Oehmann, III
J. Henry Oehmann, III
Director
Grant Thornton

He is the Director of the firm's National Executive Compensation Services Practice, where he specializes in the tax and...  |  Read More

Alan A. Nadel
Alan A. Nadel

Partner
Strategic Apex Group

He has 35 years of experience advising clients in the tax, finance and accounting implications of equity compensation...  |  Read More

Thomas D. Miller
Thomas D. Miller

Managing Director
Quist Valuation

He has performed valuations for hundreds of companies, both business valuations and valuations of securities. He has...  |  Read More

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On-Demand Seminar Audio

$147