Tech Execs Find 123(R) Challenging


Technology companies might be more likely than those in other industries to offer stock option and employee stock purchase plans to attract and retain employees, but as a result, they are also spending more time and money on financial reporting, according to a Grant Thornton survey of 104 technology executives.


More than three-quarters of respondents said they are outsourcing option valuation as a result of the increased complexity and scrutiny associated with FASB Statement no. 123(R) implementation. A majority of executives reported that reconciling the tax benefit for awards that were partially or fully vested upon adoption of the standard, as well as the grant-by-grant reconciliation of the option exercise tax benefit, was challenging or burdensome.

Almost 60% said they have increased the involvement of their compensation committee in designing compensation programs.

For more information on FASB Statement no. 123(R) implementation, see “ Options and the Deferred Tax Bite,” March 06, page 71; “A Road Map for Share-Based Compensation,” April 07, page 50; and “Avoiding FASB 123(R) Pitfalls,” May 07, page 74.

Source: Insights for Technology Business Leaders: Stock-Based Compensation Practices in Transition, Grant Thornton LLP, www.grantthornton.com .

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out