Accounting for Stock-Based Compensation (CPE Course)

Related Courses

Human Resources Guidebook 

CPE Credit: 2 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $20

Course Description
When a company issues some form of stock-based compensation to its employees, this triggers a number of rules regarding how to account for the transaction. This course clarifies the situation for the accountant by describing the treatment of equity-based compensation. The valuation and expense recognition for these stock awards is discussed, along with the related concepts of employee stock ownership plans and employee share purchase plans. In addition, the views of the Securities and Exchange Commission are summarized. In short, Accounting for Stock-Based Compensation should be your key source of information when senior management starts to contemplate these types of compensation arrangements.

Author: Steven Bragg

Course Number: AC1093

Learning Objectives

  • Recognize the basic concepts of stock-based compensation, such as the implicit service period, the derivation of compensation costs, and the classification of an employee.
  • Identify the accounting for unused stock options.
  • Specify the methods used to derive the fair value of stock-based compensation.
  • Recognize the reasons for creating an employee stock ownership plan.
  • State the rules that qualify an employee share purchase plan for special accounting treatment.
  • Specify the positions taken by the Securities and Exchange Commission related to stock-based compensation.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Accounting

Prerequisites: None

Advance Preparation: None

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.


AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.