Compensation, ASC 718

Promoting Trust and Financial Integrity

When companies offer stock options, restricted stock units (RSUs), or other equity awards to employees, proper accounting and valuation are paramount. Objective assists in ensuring that these equity-based compensation plans are recognized and measured accurately, preserving both employee trust and financial statement integrity.

Performance-based Awards​

Awards contingent on meeting certain performance criteria pose valuation and accounting challenges. Objective’s expertise enables companies to navigate these challenges, ensuring that the conditional attributes of such awards are correctly factored into their financials.

Employee Share Purchase Plans

While seemingly straightforward, share purchase plans offered at a discount can introduce nuanced accounting implications. Drawing on Objective’s insights, companies can deftly navigate the specifics, ensuring proper accounting treatments and disclosures.

In the realm of employee compensation, adhering to ASC 718 is both an obligation and a reflection of a company’s commitment to transparency. With Objective’s adept understanding and experience, businesses can seamlessly integrate these standards into their financial reporting, fostering trust and fortifying their compliance stature.

Modification of Equity Awards

If there’s a change in the terms or conditions of an equity award, it can necessitate recalculating its fair value. Objective stands ready to guide companies through this complex evaluation, upholding both compliance with ASC 718 and financial transparency.