How to Account for Restricted Stock Units Payable in Cash [Video]

The accounting for restricted stock units (RSUs) payable in cash is different from the accounting for restricted stock units that are payable only in shares. With a restricted stock unit payable in cash, the employees receiving the restricted stock units can receive the cash value of the shares (instead of receiving the shares themselves) on the vesting date. This changes the accounting in two important ways: (1) the company must record a liability (2) the company must adjust the liability at the end of each year of the vesting period — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • …