However, these initiatives are uncoordinated in an era when risks are interdependent and controls are shared.
As a result, these initiatives get planned and managed in silos, which potentially increases the overall business risk for the organization.
Restricted stock and stock units are popular with public companies; stock options continue to be the most popular choice for private companies.
When weighing the pros and cons of various compensation awards, CPAs should help companies consider factors such as the potential dilutive effect on earnings per share, the accounting costs of competing alternatives and the tax implications to both employer and employee.
Share-based employee compensation awards are classified as either equity instruments or liability instruments.
CEO Ken Lay had left a voice mail on the phones of all Enron employees asking they come into the office regardless. Congress discovered Watkins' memos to Lay and other top executives.It collapsed into bankruptcy without ever reporting a losing quarter.More than billion of shareholder investments became worthless; Enron owed billion to its creditors, 20,000 of them who will or have received on average, 14 to 25 cents on the dollar. But the scary part is that the breakdown was not done by outright intention but more by small steps in the wrong direction.In the context of bill-and-hold arrangements, ASC Topic 606 provides specific guidance that certain indicators must be met to show that control has been transferred, including: (i) a substantive reason for such an arrangement where the customer has declined to exercise its right to take physical possession of that product; (ii) the product must be identified separately as belonging to the customer; (iii) the product currently must be ready for physical transfer to the customer; and (iv) the entity cannot have the ability to use the product or direct it to another customer.Until a registrant adopts ASC Topic 606, however, it should continue to follow the older guidance for revenue recognition.