Stock Compensation 

This web resource includes hyperlinks to authoritative and interpretive guidance as well as other resources issued by the FASB, PCAOB, SEC and CAQ related to the accounting for and auditing of stock compensation.

Section I. FASB

Accounting Standards Codification (ASC)

Other FASB Resource

FASB SFAS 123R Frequently Asked Questions (FAQs), December 16, 2004

SECTION II. PCAOB

PCAOB Guidance

• Chairman Testimony - Concerning Certain Issues Related to Companies' Stock Option Granting Practices, September 6, 2006

• Staff Audit Practice Alert No. 1, Matters Relating to Timing and Accounting for Option Grants, July 28, 2006

SECTION III. SEC

SEC Regulatory Actions

SEC Amends Executive Compensation Disclosure to More Closely Align with FASB Guidance on Stock Compensation

• SEC Final Rule, Release No. 33-8732A, November 7, 2006
• SEC Press Release, December 22, 2006

SEC Final Rule: Amendment to the Compliance Date for SFAS 123(R)

• SEC Final Rule, Release No. 33-8568, April 21, 2005
• CAQ Alert #51, April 15, 2005

SEC Staff Interpretations

SEC Staff Accounting Bulletins - Codification Topic 14: Share-Based Payments

SEC Issues Staff Letters to Industry, Office of the Chief Accountant:

• SEC Letter to Zions Bancorporation, October 17, 2007
• SEC Letter to Council of Institutional Investors, February 23, 2007
• SEC Letter to Zions Bancorporation, January 25, 2007
• SEC Letter to Financial Executives International and CAQ, September 19, 2006

Other SEC Resources

• Testimony Concerning Tax and Accounting Issues Related to Employee Stock Option Compensation, June 5, 2007
• SEC Office of Economic Analysis Memorandum, "Economic Perspective on Employee Option Expensing," March 18, 2005
• SEC Chief Accountant Statement on FASB Statement No. 123(R), December 16, 2004

SEC Regulations Committee

• When Stock Based Executive Compensation That Is Capitalized or Deferred Should Be Reported in the Summary Compensation Table
  • (Discussion Document D) - July 10, 2007
• Grant Date Fair Value of Equity Award with Performance Conditions in Grants of Plan-Based Awards Table (Item 402(d)(2)(viii) of Regulation S-K
  • (Discussion Document I) - April 17, 2007
• Treatment in Pre-Adoption Pro Forma Income Statement of Options Given to Employees of a Target in a Business Combination after the Acquirer has Adopted Statement 123(R)
  • (Discussion Document C) - September 26, 2006
• FAS 123(R) Disclosures in Interim Periods during the Year of Adoption
  • (Discussion Document E) - June 20, 2006
• Pro Forma Financial Information Required in Registration Statements upon Adoption of Statement 123(R) Using the Modified Prospective Transition Method
  • (Discussion Document G) - June 20, 2006