Issue Brief Posted on: 3/01/2022
Spin-Offs: Equity Compensation Accounting Challenges
Spin-offs are booming as shareholders challenge companies to justify their size and show synergy among divisions and product lines. But spin-offs also cause many questions. When you spin out an entity, what happens to equity awards?
In this issue brief, we details ways to handle award conversions and modifications, with particular attention to the accounting and financial reporting implications.