When a company makes modifications to equity awards, it is essential to evaluate the impact on financial statements and comply with the relevant accounting guidelines. These changes can include modifications to the terms, conditions, or scope of the stock compensation, such as adjusting the exercise price, extending the vesting period, or altering the number of shares granted.
Different modifications may result in a different accounting treatment which may increase or decrease the total compensation expense. To help you better understand these situations, I've written a blog post that you can access here.
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Calvin Cheng
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