Case Studies
Cheat Sheet
Feb 15, 2024
1
min read
Dominik Konold
CEO & Founder
With this cheat sheet, you can easily find the most important information about share-based compensation and equity management.
All ArticlesWritten by
Dominik KonoldCEO & Founder
Dominik Konold is the CEO and founder of Finidy GmbH, specializing in share-based compensation and treasury accounting. With a background in audit and investment banking, he is a certified Professional Risk Manager (PRMIA) and lectures for the Association of Public Banks and the Academy of International Accounting.
FAQ
What are the key terms in share-based compensation?
Key terms include grant date, exercise price, vesting period, cliff period, good/bad leaver provisions, fair value, intrinsic value, and equity-settled vs. cash-settled arrangements.
What is the difference between fair value and intrinsic value?
Fair value is market-based measurement considering all relevant factors. Intrinsic value is simply the difference between the current stock price and the exercise price.
What accounting standards apply to share-based compensation?
Primary standards are IFRS 2 (international), ASC 718 (US GAAP), and FRS 102 Section 26 (UK GAAP). All require recognizing share-based payment expense over the vesting period.
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