they will be expensed over vesting period, but does the un-expensed bit go anywhere on the balance sheet (i assume it would be in equity)?
no - unexpensed portion is not recorded on the balance sheet.
spanku very much
should they expensed on income statement? and the unexpensed on bs?
they expense an amount of it (over vesting period) on income statement but it seems the unexpensed portion is NOT on the balance sheet (according to smileygladhands) so presumably its only supplementary info in footnotes and whatnot
yep, you’ve got it, companies should give a disclosure of the total amount that has not been yet reflected in the financial statements. Its frequently referred to as the “unrecognized compensation expense” and disclosure of the amounts should be made.
thanks,smile