Reading 22: Employee Compensation: Post-Employment and Share- accounting, 2010, class, statements, companies

土豆妮

Session 6: Financial Reporting and Analysis: Post-Employment and
Share-Based Compensation and Multinational Operations
Reading 22: Employee Compensation: Post-Employment and Share-Based

LOS j: Explain the impact on financial statements of accounting for stock grants and stock options, and the importance of companies’ assumptions in valuing these grants and options.

 

 

 

Which of the following statements about the methods of valuing employee stock options is least accurate?

A) With the fair value method, compensation expense is allocated in the income statement for the period between the grant date and the vesting date.

B) With the intrinsic value method, once the options are in-the-money, compensation expense is recognized on the income statement.

C) With either method, the offset to compensation expense recognized is an increase in paid-in capital.

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With the intrinsic value method, compensation expense is recognized in the income statement only if the market price of the stock exceeds the exercise price of the option on the date the option was granted (grant date).

Compensation expense is now based on the fair value of the option on the grant date based on the number of options that are expected to vest. The vesting date is the first date the employee can actually exercise the option. The compensation is allocated in the income statement over the service period (which is the time between the grant date and the vesting date).

For any compensation expense recognized, the offset is an expense in paid-in capital, which is a stockholders’ equity account.

rosemarie

thanks

niujiazju

Thanks a lot

steven6726

支取住房公积金的有效途径及相关方法

大体上，公积金管理规定中明确了以下十种情况可以自由支取，这是很开明的做法，基本上已经满足了“只要您确实需要用公积金里的钱，您就可以取出来”的要求。如何取住房公积金，具体如下：

1、购买具有所有权的自住住房

● 购买商品房、二手房以及公有住房房款已付清的；

购房合同（公有住房出售合同）、购房发票（个人购房交款凭证）、所购住房的房地产权证、提取人与购房人的关系证明；

● 购买公有住房直接使用公积金冲抵房款的；

公有住房出售合同、个人购房交款凭证（一式五联未加盖建行业务章或现金收讫章）、提取人与购房人的关系证明；

● 动拆迁安置产权住房

房屋动拆迁安置协议书、房地产权证、安置住房超安置费用部分的发票或收据、提取人与产权人的关系证明；

● 购买拍卖产权房

房屋拍卖确认书、房地产权证、购买拍卖房的发票或收据、提取人与产权人的关系证明；

2、建造、翻建、大修具有所有权的自住住房

● 建造、翻建具有所有权的自住住房

乡镇或城镇用地证明(土地使用证)或原房地产权证、区、县建管部门同意建造、翻建的批复、提取人与建房人或土地使用人或原产权人的关系证明；

● 大修具有所有权的自住住房

区、县房管部门关于房屋需要大修的证明（城镇地区私房可凭危房督修通知）、乡镇或城镇用地证明或原房地产权证、大修工程费用的收据或发票、提取人与土地使用人或原产权人的关系证明；

3、离退休

离、退休人员本人的离、退休证（失业人员无法取得离退休证可凭养老金发放卡）；

4、死亡

户口注销原因是死亡的户籍证明或法院宣告死亡证明或医院死亡鉴定通知书、继承人合法继承身份的证明材料（可以是与死亡职工的关系证明或经公证处公证的遗赠书或法院的判决书、裁定书、调解书）；

5、户口迁出本市

户口注销迁出本市的户籍证明（或外省市的户籍证明）；

6、出境定居

注销原因为出境定居的户籍证明或出境定居的签证和由指定机构提供签证翻译件；

7、完全丧劳

市或区(县)劳动能力鉴定委员会关于完全丧失劳动能力的证明、职工与所在单位终止劳动关系的证明；

8、外省市户籍职工与本市单位终止劳动关系

外省市户籍证明、职工与本市单位终止劳动关系的证明；

9、一次性提前结清贷款本息

贷款银行的结清证明和借款合同（或所购房屋的房地产权证）、提取人与借款人的关系证明和身份证；

10、合并账户

单位出具的重复建立个人账户证明。

如果您对此仍有疑问，或在此过程中遇到一些困难，可与我们联系，为您排忧解难，早日取出派上用场！周经理电话：18711341534；QQ：921775801  。

luqian55

thanks

土豆妮

Which of the following statements about stock appreciation rights, performance stock, and phantom stock is most accurate?

A) Stock appreciation rights never have any dilution effect on the existing shareholders.

B) Performance stock cannot be sold by the employee until vesting has occurred.

C) Phantom stock payoffs are based on the performance of the firm’s actual shares.

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With stock appreciation rights since no shares are actually issued, there is no dilution to the existing shareholders.

Performance stock is a type of stock grant. It is contingent on meeting performance goals such as accounting earnings or other financial reporting metrics like return on assets or return on equity. Unfortunately, tying performance to accounting earnings and other metrics may result in manipulation by the employee. With restricted stock, the transferred stock cannot be sold by the employee until vesting has occurred.

Phantom stock is similar to stock appreciation rights except the payoff is based on the performance of hypothetical stock instead of the firm’s actual shares.

土豆妮

In determining the fair value of a stock option, which of the following statements is most appropriate?

A) A higher than expected dividend yield will decrease the estimated fair value.

B) Absent a market-based instrument, U.S. GAAP and IFRS prefer firms to use the Black-Scholes option-pricing model.

C) A lower risk-free rate will usually increase the estimated fair value.

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Dividends paid out reduce the value of the underlying shares and therefore, reduce the value of the option.

There is no preference of a specific option-pricing model in either IFRS or U.S. GAAP. Acceptable models include the Black-Scholes model or the binomial model.

A lower risk-free rate will usually decrease the estimated fair value of the option (Refer to Study Session 17). The sensitivity factor is “Rho” and for call options, there is a positive relationship between the risk-free rate and the estimated fair value of the option.