Accounting for Stock-Based Compensation

2 Credits: Accounting


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Accounting for Stock-Based Compensation

Course Level
CPE Credits

2 Credits: Accounting

Course Description

A company may issue shares to its employees or outside parties that are intended to be compensation for past or future services rendered. These payments can take many forms, such as stock grants, stock options, warrants, and discounted employee stock purchase plans. Accounting for Stock-Based Compensation describes the treatment of equity-based compensation that is paid to employees and outsiders, addressing how to account for each of these types of stock compensation, as well as similar arrangements. The valuation and expense recognition for these stock awards is discussed, along with the related concepts of employee stock ownership plans and employee share purchase plans. In addition, the views of the Securities and Exchange Commission in regard to this topic are summarized.

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Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Recognize the basic concepts of stock-based compensation, such as the implicit service period, the derivation of compensation costs, and the classification of an employee.
  • Identify the accounting for unused stock options.
  • Specify the methods used to derive the fair value of stock-based compensation.
  • Recognize the reasons for creating an employee stock ownership plan.
  • State the rules that qualify an employee share purchase plan for special accounting treatment.
  • Specify the positions taken by the Securities and Exchange Commission related to stock-based compensation.
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Course Specifics

Course ID
Revision Date
May 30, 2023

There are no prerequisites

Advanced Preparation


Compliance Information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg Headshot

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 250 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …

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