This podcast shares insights on the different accounting models available for termination benefits in a workforce restructuring.
Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.
To continue the series, Angela shares insights on some accounting implications of workforce restructuring, including the different accounting models available for termination benefits.
In this episode, you’ll hear:
  • 1:08 - An overview of the various accounting models applicable to workforce restructuring events
  • Insights on accounting for:
    • 3:55 - One-time involuntary benefits, including severance payments
    • 8:54 - Termination benefits under an existing plan
    • 14:50 - Voluntary termination benefits and other benefit combinations
    • 20:03 - Modifications of stock-based compensation awards, including both vested and unvested awards
    • 28:36 - Extending the exercise period of stock-based compensation awards
  • 31:14 - Final advice on accounting for workforce restructuring events, including non-GAAP measures and restructuring charges

For more information on severance payment arrangements and stock-based compensation awards, read Chapter 8 of our Pensions and employee benefits guide. For more information on modifications of stock-based compensation awards, read Chapter 4 of our Stock-based compensation guide. Additionally, check out our prior podcast on non-GAAP measures.
About our guest
Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies.
About our host
Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to
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