How to Account for Restricted Stock Award

When a company issues restricted stock to employees, the company must calculate the total compensation cost (which is equal to the number of restricted shares times the market price per share on the grant date) and then recognize compensation expense over the course of the restriction period. For example, if a company were to grant 30,000 restricted shares to its CEO on January 1, 2024 and the market price of the shares on that date was $8/share, the total compensation cost would be $240,000. If the restriction period was 4 years, the company would record $60,000 of compensation expense at the end of 2024, 2025, 2026, and 2027.
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[@yashbhalla25]

I wish if i could meet you
And hug you coz you help me lot in my study sir 👍

[@Edspira]

Thank you for such a kind note, my friend. You brightened my day!

[@user-xq4xs8mf9j]

What happens if an employee pays for the restricted stock. How do you record that? I have an employee who has a restricted stock purchase agreement to buy 1M shares for $10 total and it vest over 4 years. Your video doesn't say anything about how to account for this $10. Could you please let me know? Thank you!

[@richardbrackin1790]

Dangit, i came here for the tax impact of all this.