Equity-Based Compensation for Employees & Non-Employees: The Latest Updates from the FASB Webinar

Equity compensation under ASC 505 and ASC 718 has recently undergone several improvements. In order to simplify accounting under these standards, and to conform the accounting treatment between them, the FASB has issued several standards updates that impact the treatment of settled awards, the amount of withholding that an employee can claim when settling an award, and making the treatment of equity awards for employees and non-employees consistent. All of these are intended to reduce the burden associated with accounting for equity compensation award plans by US public companies.
 

AGENDA HIGHLIGHTS

•  ASC 718, Compensation—Stock Compensation
    – Scope
    – Classification
       – ASC 480
       – Repurchase features
    – Measurement
       – Equity
       – Grant date
       – Liability
    – Expected Term (Non-Public Entities)—ASC 2016-09
    – Recognition
       – Overview
       – Service condition
    – Forfeiture
       – Prior and subsequent to ASU 2016-09
    – Recognition
       – Performance condition
       – Market condition

•  ASC 505, Equity-Based Payments to Non-Employees
    – Scope 
    – Classification 
    – Measurement
       – Overview
       – Date
    – Recognition

•  Key Changes Under ASU 2018-07
    – Improvements to nonemployee share-base payment accounting
       – Scope 
       – Classification
       – Measurement
       – Date
       – Fair value
    – Recognition 
    – Vesting conditions
    – Transition 
 

LEARNING OBJECTIVE  To provide financial professionals with an update on the key issues, regulations and accounting rules for equity-based compensation to employees and non-employees.