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This is the second of a two-case series (101-021-1 and 101-022-1). This case series covers a range of issues in valuation and financial statement analysis. The specific setting for the case is accounting for stock compensation. This is a highly typical and controversial subject across all capital markets. It is also a subject that enables an illustration of a range of broader themes, such as: (1) comparability of financial statement data across borders; (2) definition and measurement of earnings per share and free cash flow; (3) distinctions between equity and debt, and between distributions and expenses; (4) interpretation of enterprise value vs book value of capital employed; and (5) financial reporting regulation. Part One of the case is distributed to students as preparatory reading and provides a range of background information on the issue of accounting for stock compensation. Part Two, which comprises financial statement data, is issued during class. The ''Solutions'' to the analysis is available as the supplementary material (101-021-4).