We all know why companies use stock-based compensation – to supercharge their talent strategy and incentivize performance and loyalty. But as Embarkers Adam Olsen, Sarah Cage Richter, and James Durrenburger discuss in this first episode of a two-part series, there are a few areas that can make accounting for them pretty tricky, including:

• Which stock-based arrangements fall under the scope of the guidance in ASC 718?
• Measuring the awards using the fair-value based method
• Vesting considerations and conditions
• Classifying awards on the balance sheet

For more information on lease modifications and remeasurements under stock-based compensation:

• Best Practices for Choosing & Maintaining a Stock Comp Plan
• How to Choose the Right Stock Comp Accounting Software
• Comparing The Best Stock Compensation Software Solutions
• ASC 718, Compensation–Stock Compensation

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Listen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.