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We continue our miniseries on stock-based compensation awards with a focus on 5 important things for private companies to know. This is an area for which the accounting tends to be more complicated for nonpublic companies.

In this episode, we discuss:

• 3:12 – Measurement of liability-classified awards
• 5:59 – Secondary market transactions
• 16:39 – Profit sharing arrangements
• 22:44 – Equity restructurings
• 31:25 – Recourse and nonrecourse loans

For more information, see chapter 6 of our Stock-based compensation guide. Also, check out our other episode in this miniseries, Stock-based compensation - 5 things to know about modifications. Additionally, follow this podcast on your favorite podcast app for more episodes.

Ken Stoler is a partner in PwC’s National Office who specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits. He has helped companies navigate their employee compensation issues during IPOs, spin offs, acquisitions, and other major transactions or events.

Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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We kick off our miniseries on stock-based compensation with a focus on 5 important things to know when accounting for modifications to stock-based compensation awards.

In this episode, we discuss:

• 2:40 – How to determine whether a change in terms or conditions should be accounted for as a modification
• 5:00 – The stock-based compensation modification framework
• 8:29 – Four types of modifications related to vesting conditions
• 18:39 – Modifications that change classification
• 22:15 – Modifications of performance conditions

For more information, see chapter 4 of our Stock-based compensation guide. Additionally, follow this podcast on your favorite podcast app for more episodes.

Ken Stoler is a partner in PwC’s National Office who specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits. He has helped companies navigate their employee compensation issues during IPOs, spin offs, acquisitions, and other major transactions or events.

Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

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We continue our miniseries on software costs. They are accounted for using two different models depending on whether the software is used internally or externally. In this episode, we discuss the internal-use model applicable to software developed or obtained to meet the reporting entities’ internal needs.

In this episode, we discuss:

• 3:24 – The scope of internal-use software
• 10:29 – The three stages of software development
• 14:07 – Cloud computing arrangements
• 17:50 – Practical challenges in applying this model
• 25:05 – An overview and update on the FASB's current software costs project

For more information, see chapter 3 of our Software costs guide. Also, check out our other episode in this miniseries, Accounting for the cost of externally marketed software. Additionally, follow this podcast on your favorite podcast app for more episodes.

Mike Coleman is a partner in PwC's National Office who specializes in accounting for revenue and software arrangements and has served technology clients for much of his career. In addition, Mike has represented the firm on the AICPA Software Task Force.

Pat Durbin is a Deputy Chief Accountant in PwC’s National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.

Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.