Practical tip: Dividends Paid on Stock-Based Compensation Awards May Need to be Recorded as Additional Compensation Expense (No. 2010-06)
Practical tip
Dividends paid on underlying shares related to incentive awards while the award is outstanding or the restricted stock award is unvested may need to be recorded as compensation expense. The accounting depends on whether the award is classified as an equity or liability award and, if classified as an equity award, whether the award is expected to vest. In this Practical Tip, PwC highlights the appropriate accounting treatment.