Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

41   ASC 718 COMPENSATION—STOCK COMPENSATION

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Overview

Definitions of Terms

Concepts, Rules, and Examples

Accounting for Share-Based Payments

ASC 718: Detailed Explanation

Scope

Measurement of compensation cost from share-based payment arrangements with employees

Recognizing compensation

Modified awards

Accounting for Employee Stock Options under ASC 718

Option fair value calculations

Example—Determining the fair value of options using the Black-Scholes-Merton model

Example—Determining the fair value of options using the binomial/lattice model

Example—Multiperiod option valuation using binomial model

Example—Accounting for stock options for a publicly held entity

Example—Accounting for stock options for a nonpublic entity that is not an SEC registrant and elects the calculated value method

Example—Accounting for stock options for a nonpublic entity that is not an SEC registrant and elects the intrinsic value method

Example of fair value accounting for stock options with cliff vesting—measurement and grant date the same

Example of accounting for stock options with graded vesting—measurement and grant date the same

Accounting for Stock Appreciation Rights and Tandem Plans

Background

Stock appreciation rights and similar instruments

Example of accounting for SARs—share-based liabilities

Stock SARs

Tandem plans

Modifications of Awards of Equity Instruments

Example of a liability-to-equity modification

Example of an equity-to-liability ...