Stock Comp Accounting

So I read Shewser twice on this topic and still have a big question mark over my head… all I got from it is that starting June 15th 2005 companies need to expense their stock comp. on IS as of grant date based on MV…and that US is more flexible in their accounting than IFRS. Am I on the right track or am I completely off?

Remember safe harbor is 5% (if the discount is of 5% or less you don’t have to include it on the income statement). I am not sure of the date.

Safe harbour applies to US only I believe… There’s also different expensing methodologies for compensatory/service/performance/retirement plans. Donlt forget that graded vesting calculations must be revisted each year for Int’l GAAP

It is only for the US (US more flexible like he said). allenpourpecher: can you elaborate on the different expensing? I remember some are expensed no matter what, others can be partial.

Delete - sorry wrong post