Problem:
A staff person was assigned to the audit of a publicly traded company, and the senior had asked you to evaluate both share-based payment reporting and special purpose entities (SPE) reporting for the company.
Research share-based payment reporting and SPE reporting individually.
Write an executive memo as a team that includes a description of what you will look for to see if the client is consistent with the generally accepted accounting principles (GAAP). Pay particular attention to accounting treatment of share-based payment and accounting consolidation theory as it relates to special purpose entities. Keep the memo as brief as possible while fully exploring the issues.