# Stock-based compensation

> Stock-based compensation — The cost of equity awards — options, RSUs, restricted stock — measured at grant-date fair value and recognized as expense over the service period. Non-cash, so added back in operating cash flow, but a real cost.

Source: https://lopifi.com/glossary/stock-based-compensation
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is stock-based compensation?** In accounting, stock-based compensation means the cost of equity awards — options, RSUs, restricted stock — measured at grant-date fair value and recognized as expense over the service period. Non-cash, so added back in operating cash flow, but a real cost.

## Also known as

- SBC

## Words this system refuses for it

- free equity
- not a real expense

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** expense, equity, period