Surgent's Share-Based Payments: Understanding the Nuances of ASC Topic 718 (SBC4)

Course Details

Date

Thursday, September 12, 2019

7:00am – 10:30am

Field of Study

Accounting

Course Number

SU0193

CPE Credit

4.0 hours CPE credit

Level of Knowledge

Intermediate

Vendor

Surgent McCoy CPE, LLC

Prerequisites

Experience in accounting and auditing

Description

Since its effective date in 2006, the guidance for accounting for share-based payments, which is currently codified in ASC Topic 718, has continued to challenge entities who offer such compensation schemes. This is due to its combination of detailed implementation rules and required use of complex valuation models. Ten or so years on, entities continue to struggle in applying this guidance. In this course, we will attempt to de-mystify the accounting for share-based payments. We'll review the basic accounting model under Topic 718, including how to account for the income tax implications of recording compensation expense for all awards within the scope of Topic 718. We'll also explore the valuation models used to estimate the fair value of these awards, including a discussion of the key assumptions used in the most popular model, the Black-Scholes. Lastly, we'll explore the implications of recently issued FASB Updates that impact Topic 718, including the impact of the Tax Cuts and Jobs Act on the income tax accounting for such awards.

Highlights

  • Common types of share-based payment compensation awards
  • ASC Topic 718, Compensation, Stock Compensation
  • Accounting for the income tax implications of share-based payment compensation awards
  • Basic valuation techniques for share-based payment awards
  • Presentation and disclosure issues
  • New accounting and tax guidance in the area of share-based payment awards

Objectives

  • Apply the FASB’s guidance for share-based payment compensation found in ASC Topic 718
  • Apply the classification guidance for stock awards as either equity or liability
  • Compute the expense attribution models for share-based awards
  • Develop the journal entries for the compensation and income tax accounting aspects of share-based payment compensation awards
  • Recall the basic valuation approaches used to value stock-based awards
  • Explain new and proposed changes to current accounting guidance in ASC Topic 718

Designed For

Accounting and auditing practitioners at all levels desiring to understand the FASB's accounting guidance related to share-based compensation

Course Pricing

Member Fee

Applicable if you are a HSCPA member in good standing.

$139.00
Non-Member Fee

Applicable if you are not a HSCPA member.

$169.00
Your Price $169.00

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This course does not qualify for CPE Choice.

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