Wiley GAAP 2021, 2nd Edition

43ASC 718 COMPENSATION—STOCK COMPENSATION

1. Perspective and Issues
   1. Technical Alert
      1. Guidance
      2. Effective Dates
      3. Transition
   2. Subtopics
   3. Scope and Scope Exceptions
   4. Overview
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Recognition
      1. Recognition Principle
      2. Classifying Awards as Liabilities or Equity
      3. Market Performance and Service Conditions
      4. Effect of Employer Payroll Taxes
   2. Initial Measurement
      1. Factors That Affect the Fair Value at Grant Date
      2. Valuation Models
      3. Nonpublic Entity—Calculated Value for Nonemployee Awards
      4. Nonpublic Entities—Calculated Value Method
      5. Nonpublic Entity—Practical Expedient for Intrinsic or Calculated Value for Liability‐Classified Awards
      6. Nonpublic Entity—Practical Expedient for Expected Term
      7. Difficulty in Estimation
      8. Reload Feature and Reload Option
      9. Example of Reload Options
      10. Contingent Features That May Affect the Valuation Model
      11. Market, Performance Conditions, and Service Conditions
   3. Subsequent Measurement of Compensation
      1. Compensation Costs for Awards Classified as Equity
      2. Compensation Costs for Awards Classified as Liabilities
      3. Valuation for Graded‐Vesting Employee Awards
      4. Awards Subject to Other Guidance
      5. Modifications of Awards
   4. Modifications of Awards of Equity Instruments
      1. Equity‐to‐Liability Modification
      2. Liability‐to‐Equity Modification
      3. Example of a Liability‐to‐Equity Modification
      4. Example of an Equity‐to‐Liability Modification
      5. Change in Model
      6. Change in the Issuer’s Credit Risk
      7. Option Fair Value Calculations
      8. Example—Determining the Fair Value of Options ...