Fall 2010 Class 4

Contributed surplusstock options dr cr compensation

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Unformatted text preview: ions were expired on Jan. 1, Assume 2015. The journal entries are: 2015. Contributed Surplus—Stock Options 176,000* Contributed Surplus— Expired Stock Options 176,000* Contributed Expired 176,000* *176,000= 80% *220,000 *176,000= 80% Accounting for forfeited CSOP Accounting for forfeited CSOP If stock options were forfeited because the an employee If forfeited fails to satisfy a service requirement, an adjusting journal entry will be make to reduced the compensation expenses: Dr. Contributed Surplus—Stock options Dr. Cr. Compensation Expense Compensatory vs. Non­ Compensatory vs. Non­ Compensatory Plans Factors to determine if a plan is compensatory 1. Option terms • Non-standard terms imply compensatory 1. Discount from market price • Implies compensatory 1. Eligibility • If available to only a certain group of If employees (i.e. management) employees Compensatory vs. Non­ Compensatory vs. Non­ Compensatory Plans Stock Options Compensatory CSOP Operating transactions Income Income Statement Statement Non-compensatory ESOP Capital transacti...
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This note was uploaded on 03/15/2012 for the course BUS 303 taught by Professor Brown during the Spring '11 term at Simon Fraser.

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