November 15, 2021
Refresher: Accounting for Stock Compensation Under ASC 718
For all of us securities lawyers who didn’t major in accounting, FW Cook published a 13-page primer covering the most pertinent provisions of accounting for stock compensation under FASB ASC Topic 718. Below are some of the topics covered – junior attorneys in particular might benefit from reading up on the 718 “basics” before proxy season:
– Scope of ASC 718
– Compensation cost for equity and liability awards
– Accounting treatment in clawback provisions and non-compete agreements
– Accounting treatment for modifications to service and performance vesting conditions
– Accounting of awards in business combinations
– Emily Sacks-Wilner