Stock-Based Compensation Accounting: Grant-Date Fair Value, Vesting & Expense (IFRS 2 / ASC 718)
Value an option grant with Black-Scholes, spread cliff and graded awards, handle forfeitures, RSUs, options and performance shares with market and non-market conditions, account for a repricing, post the journal entries, apply the treasury stock method to diluted EPS and chart the ESPP and total expense: 8 labs on one fictional company (educational).
The first lesson is free — no account needed.
About this course
A stock-based compensation accounting course that follows the share awards of one fictional robotics company through ASC 718 and IFRS 2 in a spreadsheet, for accountants, auditors, equity plan administrators, finance students and anyone who reads an SBC footnote. You value an option at the grant date with the Black-Scholes-Merton formula and NORM.S.DIST, spread an RSU award with graded and straight-line attribution, expense a cliff-vesting grant with estimated forfeitures and with forfeitures as they occur, compare RSUs, options and performance shares with market and non-market conditions, account for the repricing of underwater options with the incremental fair value, post the expense, vesting and exercise journal entries, apply the treasury stock method to diluted EPS and add the ESPP discount to a five-year expense chart. Simplified and educational, not accounting advice. The first lab is free.
Lessons
- Plan Terms & Grant-Date Fair Value with Black-ScholesFree
- Cliff vs Graded Vesting: Straight-Line vs Tranche-by-Tranche Pro
- Forfeitures: Estimate Up Front vs Account as They Occur Pro
- RSUs vs Options vs Performance Shares: Market & Non-Market Conditions Pro
- Modifications: Repricing & Incremental Fair Value Pro
- Journal Entries: Expense, RSU Vesting & Option Exercise Pro
- Diluted EPS: The Treasury Stock Method Pro
- ESPP Discount Expense & Total Expense by Year Pro