Hot Topic: Modifications

Sooner or later, a company that issues equity awards likely will have to modify them in some way.

Maybe an industry-wide shock has put existing performance targets out of reach. Or an acquisition has brought additional earnings that would yield a windfall well beyond the maximum payout. Perhaps the board would like to accelerate a retiring executive’s shares in recognition of years of outstanding service. Whatever the circumstances, each modification is one of a kind—a reflection of the company’s objectives, business model, and overall compensation philosophy.

Here’s your portal to all the insights Equity Methods has published on this multifaceted topic. Need more? We’re here to help. Look into our modification services or just contact us directly.

Equity Award Modifications: Connecting the Theory to Practical Cases

Newly updated for 2019, our modifications white paper provides a holistic discussion of the share-based payment accounting model for modifications.

Daniel Hunninghake, CPATakis Makridis, and David Outlaw · 6/19/2019

Equity Award Modifications

Whether you’re an accountant or a compensation professional, tune in for a webcast that will help you get equity award modifications right.

David Outlaw and Yudian Tang · 6/11/2019

5 Frequent Modification Mishaps

Here are some of the most common types of modifications and the implications they have for the financial statement and proxy.

David Outlaw and Daniel Hunninghake, CPA · 4/22/2019

ASU 2017-09 Brings Partial Clarity to Modification Accounting

ASU 2017-09 is intended to clarify when changes to share-based payment awards must be accounted for as modifications. Does it succeed?

Takis Makridis · 8/30/2017

Modification Accounting Clarified in New FASB Proposal

FASB released an exposure draft on the application of modification accounting guidance under ASC 718. Here’s a summary of the proposed changes.

Daniel Hunninghake, CPA and David Outlaw · 11/28/2016