Wiley GAAP: Financial Statement Disclosure Manual

43ASC 718 COMPENSATION—STOCK COMPENSATION

1. Authoritative Literature
   1. Technical Alert
      1. Guidance
      2. Effective Dates
      3. Transition
   2. Subtopics
   3. Scope and Scope Exceptions
   4. ASC 718‐10, Overall
      1. Recognition Principle
      2. Classifying Awards as Liabilities or Equity
      3. Valuation Models
   5. ASC 718‐40, Employee Stock Ownership Plans
   6. ASC 718‐50, Employee Share Purchase Plans
   7. ASC 718‐740, Income Taxes
2. Practice Alert
3. Presentation and Disclosure Requirements
   1. Presentation
      1. Balance Sheet
      2. Income Statement
   2. Disclosures
4. Presentation and Disclosure Examples
   1. Example 43.1: Share‐Based Compensation Accounting Policy, Including Performance‐Based and Time‐Based Options
   2. Example 43.2: Share‐Based Compensation Accounting Policy
   3. Example 43.3: Fair Value Estimation of Stock Options Using the Black‐Scholes Model
   4. Example 43.4: Share‐Based Compensation—Accounting Policy and Assumptions
   5. Example 43.5: Schedule of Estimate of Fair Value of Stock Option Grants

AUTHORITATIVE LITERATURE

The economic substance of share‐based payment arrangements is to provide compensation for goods or services as they are received, resulting in costs that should be reported by the entity using the fair value method of accounting. (ASC 718‐10‐10‐1) ASC 718 requires fair value accounting for all share‐based payment plans, except for equity instruments held by employee stock ownership plans (ESOPs). (ASC 718‐10‐10‐2)

Technical Alert

In November 2019, the FASB issued Accounting Standards Update 2019‐08, Compensation—Stock Compensation ...