Lecture Intermediate accounting - Chapter 19: Share-based compensation and earnings per share

Lecture Intermediate accounting - Chapter 19: Share-based compensation and earnings per share. In this chapter we look at some common forms of compensation in which the amount of the compensation employees receive is tied to the market price of company stock. We will see that these share-based compensation plans-stock awards, stock options, and stock appreciation rights-create shareholders’ equity. The nature of this compensation will impact the way we calculate earnings per share, the topic of the second part of this chapter.