Employee Stock Options (Part I): Accounting under FASB ASC Topic 718

Introduction

Employee stock options are widely used to align managers' interests with those of stockholders. The accounting and tax treatment of these instruments , however, can be highly complex. In this two part course, we explain key laws and regulations impacting, both, the financial accounting and the tax treatment of option awards to employee. While we recommend that attendees take both courses, each course is designed as a standalone unit and can be taken by itself.

This course is designed to help you distinguish between equity and liability awards, and recognize service, performance and market based awards. The course will also increase your understanding of the accounting for re-pricings, other modifications and claw-backs, as well as the valuation issues.

This is the first half of a two part course team taught by experienced faculty from Cal State Fullerton and expert instructors from PricewaterhouseCoopers.

The course is intended for CFOs, controllers, tax practitioners, ad accounting and finance professionals that must deal with the accounting for employee stock options.

Topics

Topics covered by this course include:

Recognition of equity based Awards

    Grant date, service inception date, requisite service periods
    Service, performance and market conditions
    Changes in estimates of requisite service periods
    Changes in probable performance outcomes
    Accounting for forfeitures
    Awards on a graded vesting schedule
    Income taxes

Recognition of liability Awards

    Determining whether an award is equity or a liability
    Accounting for liability awards

Modifications of Awards

    Modifications involving changes in fair value
    Modifications involving vesting terms
    Reclassifications of awards from equity to liability and vice       versa

Awards made by Non-Public Companies

    Computing calculated volatility

Valuation Issues

    Comparing Black Scholes with Lattice models
    Valuing all substantive features of option awards
    Using Lattice Models for valuing stock options with a market       condition
    Short-cut method for computing volatility
    Using implied volatilities
  

CPE Information

Program Level: Intermediate

CPE Information: 4 CPE Hours

Teaching Method

Group-Live or Group Internet-Based

Prerequisites

Attendees should have 3-5 years prior industry experience and thorough knowledge of financial accounting principles and practices. Additionally, attendees should have a reasonable prior knowledge of the technical requirements of US GAAP.

Advanced Preparation

None

Instructor

Vivek Mande, Ph.D | CSUF 
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Ryan Smith | PricewaterhouseCoopers LLP
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Course Details

Duration: 4 CPE Hours

Course Level: Intermediate

CPE/CPD: 4 units

Date: Friday, August 22, 2014

Start Time: 8:00 am PDT

End Time: 12:00 pm PDT

Location: Live Class  or Webcast

Instructors:
Vivek Mande, Ph.D
CSUF
Ryan Smith, CPA
PricewaterhouseCoopers LLP

Price: $195


Register for both courses and save $40


CPE Sponsors
The Center for Corporate Reporting & Governance at California State University, Fullerton is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
Website: www.nasba.org
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