Accounting for Stock-Based Compensation

Conference Highlights Include:

Topic 718 (FAS 123R) is changing the way we look at Stock-Based Compensation - and creating highly complex implications for companies across accounting, tax, valuation and plan design. These complexities, along with the new SEC proxy disclosure requirements, have made reporting and disclosure ever more challenging. That's why this program features practical cases and examples - to help clear up any confusion! Take this opportunity to share experiences with those who have been through the implementation process and learn from Topic 718 experts

Key Topics:

Agenda

Day 1
Times Topics Speakers
9:30am - 10:30am UNDERSTANDING FASB EQUITY-BASED COMPENSATION STANDARD

We kick off the program by giving you an in-depth understanding of the expensing and fair value measurement standards of Topic 718 (FAS 123R), how it impacts your accounting and reporting:

  • Application to employees - public companies and nonpublic companies
  • Application for services by non-employees
  • Review of issued FSPs that have amended the statement as well as ongoing FASB interpretive guidance
  • Interaction with other important guidance such as Topic 260 (Statement 128), Topic 360 (FAS 144), Topic 740 (FAS 109), and Topic 230 (Statement 95)
10:30am - 10:45am Coffee Break
10:45am - 12:00pm UNDERSTANDING IFRS 2 EQUITY-BASED COMPENSATION STANDARD
  • Key differences between GAAP and IFRS stock-based compensation principles
  • The impact of the planned convergence of GAAP and IFRS, and the impact this will have on share-based payment guidance under Topic 718
  • Case example and readiness planning
12:00pm - 1:00pm

LUNCHEON
1:00pm - 2:15pm PRINCIPLES OF EXPENSE RECOGNITION

Understand Topic 718's detailed guidance and principles related to stock-based compensation, including:

  • Determining a valid grant date and measurement date
  • Key concepts such as the requisite service period, service inception date, explicit and implicit service periods
  • Establishing a forfeiture rate assumption, when to change the assumption, and how to true up/down estimate to actual expense
  • Identify and plan for IFRS 2 changes
2:15pm - 3:15pm STOCK-BASED COMPENSATION PLANS: "PART I": ARE YOU USING THE RIGHT ONE?

Hear a detailed description of the various types of stock-based compensation plans; Find out how they are structured, the pros and cons of each, why alternatives to stock options are now compelling and necessary from a financial perspective and their effects on the income statement and balance sheet.
3:15pm - 3:30pm Coffee Break
3:30pm - 4:45pm STOCK-BASED COMPENSATION PLANS: "PART II": ACCOUNTING FOR MODIFICATIONS & COMPLEX ARRANGEMENTS

Review how modifications and settlements of stock-based awards are now calculated; understand how option repricing, exchanges and cashouts are accounted for under Topic 718.
Understand how complex stock-based awards are expensed, including awards with market, performance or multiple vesting conditions, dividend-protected grants, transferable stock options and early exercise options.
4:45pm DAY ONE ADJOURNMENT
Day 2
Times Topics Speakers
8:30am - 11:45am
10:15am - 10:30am
(Coffee Break) 		TAX IMPLICATIONS OF STOCK COMPENSATION UNDER TOPIC 718: CASES AND PRACTICAL EXAMPLES

Topic 718 requires that the computation of the expense of stock compensation incorporate the tax effects of such plans. Gain an understanding of the tax treatment, vital in determining the net-of-tax consequences of stock compensation plans.

  • Tax accounting (book and deferred tax asset) reconciliations and journal entries required under Topic 740 under alternative scenarios
  • Impact of method of calculating the APIC pool on post-Topic 718 tax reconciliations and cash flow reporting
  • Unique transition challenges related to tax accounting upon the adoption of Topic 718, including "straddle options"
  • Special issues such as ISO disqualifying dispositions, treatment of dividends, and 162(m)
  • Reconciling tax expense and APIC for interim period reporting
  • Impact of NOLs on APIC and DTA calculations
  • Identify and plan for IFRS changes
11:45am - 12:45pm

LUNCHEON
12:45pm - 1:45pm FAIR VALUE INPUTS AND ASSUMPTIONS

The "bar is higher" under Topic 718 as it relates to measuring fair value. You will understand:

  • The trade-off's among the most prevalent fair value measurement methods
  • The pluses and minuses of Black Scholes vs. binomial (lattice) modeling

Establishing valuation assumptions that will withstand increased audit scrutiny Identify and plan for IFRS changes
1:45pm - 2:45pm EARNING PER SHARE: CASES AND PRACTICAL EXAMPLES

Topic 718 impacts the calculation of basic and diluted earnings per share, important business and shareholder metrics. You will understand:

  • The impact on basic and diluted calculations
  • How EPS is calculated under various scenarios
  • How EPS is impacted by stock awards with market or performance conditions
2:45pm - 3:00pm COFFEE BREAK
3:00pm - 4:00pm COMPLYING WITH THE 10K AND SEC PROXY DISCLOSURE REQUIREMENTS FOR STOCK COMPENSATION PLANS

Find out what you need to disclose under Topic 718 and the stock-based compensation under the amended SEC Proxy. Understand the impact on your reporting responsibilities. You will understand:

  • Current and amended reporting requirements
  • What analysts and other readers look for in your 10K/Q disclosures and how they evaluate the information
  • Review best practice examples of the new 10K disclosure requirements
  • The impact of the recent changes to the SEC Proxy reporting of stock-based awards
  • Understand data requirements and receive disclosure planning tips
4:00pm - 4:30pm STOCK OPTION SOFTWARE AND STOCK PLAN ADMINISTRATIVE SYSTEMS

Understand how to evaluate various stock option software packages and select a system that will support your financial disclosure and reporting requirements.

  • Understand when and why a system is needed
  • Review system selection criteria and review a matrix for evaluating various software & administrative packages
  • Review SOX/404 controls requirements specific to stock option plans
4:30pm - 4:45pm

QUESTION & ANSWER SESSION
4:45pm COURSE ADJOURNS
View Spring 2010 Stock-Based Comp & Pensions Brochure.

Earn CPE & CLE credits

Be sure to request credits when you register for your course!

All EEI live seminars and live webinars qualify for CPE credits without additional tests or reading

Learn More…
Learn about our 100% money back guarantee…

Upcoming Programs

Best Practices For Internal Controls and Risk Management

Juen 11, 2012 — Chicago, IL June 19, 2012 — New York, NY

Learn solutions and best practices in creating efficient controls and conducting an enterprise risk assesment.

24th Annual International Tax Withholding

June 5-6, 2012 — New York, NY

Keep on top of the ever evolving FATCA requirements but do not ignore the potential traps and pitfalls of the CROSSBORDER (“NRA”) WITHHOLDING REGULATIONS. Hear directly from key government and industry players on the current state of play.

Public Filers Symposium

June 20-21, 2012 — Las Vegas, NV

First rate insights on FASB and SEC's reporting and disclosure requirements!

Accounting for Derivatives

Juen 13-14, 2012 — Las Vegas, NV June 21-22, 2012 — New York, NY

Let Ira Kawaller guide you through the relevant standards and clarify how to use alternative treatments to meet your objectives!