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What is the acctg if RSU's are given as part of acquisition?

Mark Schulte's Profile

Assume public company A is acquiring private company B.  A offers $10M cash and $5M of RSU's to the employees of B.  How does A record this on it's books?  How would B value this as part of the offer?

Answers

Meat Hog
Title: CFO
Company: 123 Burt Street
(CFO, 123 Burt Street) |

I think it depends on when the RSU's vest or when the employees are entitled to the award. I would accrue over the vesting period until the award is paid adjusting the accrual quarterly for changes in Company A's stock price... given we are talking about a public company. Someone correct me who is more familar with acquisitions. This might be one of this situations where 100% is accrued up-front as a cost of acquisition.

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