Chapter 13: Stock-Based Compensation

In this section

• Equity vs. Liability Awards
  Comprehensive guidance on classifying stock-based compensation as equity or liabilities, exploring triggers, practical examples, diagrams, and best practices.
• Measurement at Grant Date and Subsequent Changes
  Explore how to measure stock-based compensation at the grant date, the role of fair value models like Black-Scholes, and how subsequent changes are accounted for.
• Vesting Conditions, Performance Features, and Forfeitures
  Explore how vesting conditions, performance features, and forfeitures shape stock-based compensation expense, from service-based vesting rules to performance triggers and real-world accounting entries.
• Illustrations and Journal Entries for Stock-Based Compensation
  Explore year-by-year compensation expense recognition, common pitfalls, and comprehensive journal entries for stock-based compensation awards under ASC 718.