How to Record CAS 415 Stock Based Comp
Accounting for the measurement and allocation of stock-based compensation under Cost Accounting Standard 415.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| G&A Expense - Stock Based Compensation | Debit | 50,000.00 | - |
| Unallowable G&A - Non-Deductible Stock Options | Debit | 15,000.00 | - |
| Paid-in Capital - Common Stock Options | Credit | - | 65,000.00 |
💡 Accountant's Note
CAS 415 provides criteria for the measurement of deferred compensation. However, FAR 31.205-6(i) often makes certain stock-based awards unallowable for government pricing, necessitating a split between allowable and unallowable accounts.
Practitioner & Systems Framework
💻 ERP Architecture
Automate the split in the overhead pool by tagging unallowable stock compensation accounts with a 'non-reimbursable' flag.
⚠️ Audit Flags
Failure to identify and exclude unallowable stock option costs per FAR 31.205-6(i); inconsistency between GAAP valuation and CAS measurement dates.
📄 Required Documentation
Stock option grant agreements, board approval minutes, and CAS 415 valuation calculation worksheet.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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