Intermediate Accounting, 10 Ed
Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
Question
Book Icon
Chapter 19, Problem 19.1Q
To determine

Shares: The common stock is divided into smaller units of equal value called as Shares and issued to the public, to raise funds.

To Explain: TheRestricted Stock, difference between Restricted Stocks and RSU, and determination and recording of compensation expense for restricted stock award plan.

Expert Solution & Answer
Check Mark

Explanation of Solution

Restricted Stock: Restricted stock is the portion of shares held up by the management, to be issued for the employees, which are subject to some conditions.

Restricted Stock: Restricted stock is the portion of shares held up by the management, to be issued for the employees, which are subject to some conditions.

Restricted Stock Units (RSU): RSUs are a type of restricted stock which is held up for some time, before being issued to the employees. Further they do not oblige the employees to stay in the company. Till they are issued to the employee, the employer possesses the right.

The compensation expense for the restricted stock award plan is the fair value of the stock equal to the market value at the grant date. The compensation expense is the accrued fair value over the service period till the vesting date. However, this could be made in the form of cash, shares or at times, both.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Where can authoritative IFRS be found related to dilutive securities, stock-based compensation, and earnings per share?
Explain and implement the accounting for restricted stock plans
Define Restricted Stock Awards.
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
SWFT Comprehensive Vol 2020
Accounting
ISBN:9780357391723
Author:Maloney
Publisher:Cengage
Text book image
SWFT Comprehensive Volume 2019
Accounting
ISBN:9780357233306
Author:Maloney
Publisher:Cengage
Text book image
SWFT Corp Partner Estates Trusts
Accounting
ISBN:9780357161548
Author:Raabe
Publisher:Cengage
Text book image
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Text book image
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College