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Example BE 16-8 (Lutz Co): Restricted Stock | Stock Options | Intermediate Accounting | CPA Exam FAR

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restricted stocks, unearned compensation, employee stock purchase plan, grant date, exercise date, exercise price, warrants, stock warrants, proportional method, incremental, stock options, stock warrant, paid-in capital, detachable, nondetachable warrant. stock rights, preemptive right, preemptive privilege, stock option, compensation expense
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Text Comments (2)
abid majid (1 year ago)
Hello Prof, Thank you for the video, was extremely helpful. I was juts wondering if you could help me out with a practical issue I'm facing at my company. There was an employee who had RSUs (restricted stock units) but forfeited his shares, could you tell me how it would effect the dividend. From my understanding, RSU holders are owners of shares and hence entitled to dividend, so when they forfeit their shares, what do we do for the dividend, do we reverse that as well !?
Whoever Whoever (3 years ago)
Question for the last part. Assuming the executive leaves after year one, in this question, you credit the unearned compensation because that is the amount left. Assuming the executive leaves 4 months later after year 1, like he left on April 30th, 2015. Do we still need to record that 4 months compensation expense? like the remaining $50000 x the remaining months, 8/12? Or we only record it if he stays for a full year?

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