This technical note introduces the accounting treatment of employee stock-based compensation, with a focus on awards subject to service, performance, and market vesting conditions. It guides students through the valuation and expense recognition of equity awards under varying contingencies, including complex scenarios involving multiple conditions and tranches. Through clear explanations and practical examples, the note equips readers with the foundational tools to analyze and account for stock-option grants, making it a valuable supplement for courses in financial accounting or executive compensation.