Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 41ASC 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

   Accounting for Employee Stock Options under ASC 718

   Accounting for Stock Appreciation Rights and Tandem Plans

   Modifications of Awards of Equity Instruments

   Accounting for Income Tax Effects of Share-Based Compensation

   Other ASC 718 Matters

   Accounting for Stock Issued to ESOPs

   Other Sources

PERSPECTIVE AND ISSUES

Subtopics

ASC 718, Compensation-Stock Compensation, provides guidance on share-based payments to employees and contains six subtopics:

• ASC 718-10, Overall, contains the high-level objectives for the Topic
• ASC 718-20, Awards Classified as Equity, deals with share-based awards to employees classified as equity
• ASC 718-30, Awards Classified as Liabilities, deals with share-based awards to employees classified as liabilities
• ASC 718-40, Employee Stock Ownership Plans, contains the following subsections:
  • General
  • Leveraged employee stock ownership plans
  • Nonleveraged employee stock ownership plans
• ASC 718-50, Employee Share Purchase Plans,
• ASC 718-60, Income Taxes, which addresses accounting for income taxes related to share-based payment arrangements.

Scope and Scope Exceptions

ASC 718 applies to all entities and to all share-based payment transactions where the entity acquires employee services by ...