As part of our Share-Based Payment (SBP) Best Practice Series, Montgomery Investment Technology is pleased to provide you with our research which focuses on the valuation techniques and disclosures based on the 2012 10-K and DEF14A filings of the Dow Jones Industrial Average companies. We have compiled a two page report illustrating how the Dow 30 companies are complying with Accounting Standards Codification 718 (formerly FAS 123R) and what forms of Share-Based Payments each company provides. This report ...Continue Reading →
Much has been said about some of the high profile IPOs in recent years (Zynga, Facebook, Groupon, LinkedIn) questioning whether the tax deduction that the corporations are receiving is justifiable when the companies have a pre-tax income.
Facebook is an excellent example. Pre-tax, they managed to swing to a profit. After income taxes, they are to receive an approximately $500 million refund.
There are a couple of reasons for this situation:
Net Operating Loss carry ...Continue Reading →
Equity Compensation is a vehicle for paying employees, directors and other consultants for work they perform for an organization. The most popular form of Equity Compensation is the Employee Stock Option (ESO).
ESOs come in two major forms that companies need to be aware of prior to making grants to their employees through an equity compensation plan. The types of employee stock options are Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NQs).