Financial Reporting, Compliance & Valuation

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The “Stub Period” Challenge

Relative Total Shareholder Return (RTSR) awards are the most prevalent type of performance awards in the global marketplace.  The  accounting fair value under ASC Topic 718 for RTSR awards is estimated using Monte Carlo simulation...
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What Is Monte Carlo Simulation?

Performance Share plans that are contingent on Relative Total Shareholder Return (“RTSR”) continue to gain in prevalence. However, the accounting rules under ASC 718 create financial reporting needs on the date of grant, as it...
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The Valuation of Non-Vesting Conditions under IFRS 2

If a plan allows for retirement-eligible award holders to continue to earn their awards after retirement, what initially looks like a performance condition could actually be a “non-vesting” condition under IFRS 2. Non-vesting conditions should...