Deferred SBC Expense

1 minutes read
Last updated: November 6, 2023

In this step we add a section to our accounting adjustments called “Deferred Stock-Based Compensation Expense” that calculates the annual after-tax compensation expense arising from the amortization of unearned compensation. Recall that unearned compensation is recorded as an asset on the balance sheet and amortized over the remaining future service (vesting) period. A more detailed discussion of unearned compensation and FIN 44 can be found here.


Download Template

Deferred SBC Expense

Try Macabacus for free to accelerate financial modeling in Excel.

Speed Up Financial Modeling with Macabacus

Try the leading Microsoft 365 add-in for finance and banking. Create complex financial models and branded presentations in record time.

Start a Free Trial

Discover more topics

Build an operating model
In this tutorial, we will walk through how to build a general industry business operating model.
Read more
Build an M&A model
In this section, we demonstrate how to model a merger of two public companies in Excel.
Read more
Build an LBO model
In this tutorial, we will walk you through building an LBO model in Excel.
Read more
Asset and Stock Deals
The first step in purchase price allocation, or PPA, is to determine the purchase price.
Read more