A roadmap to accounting for share-based payment awards (2018) has been added to your bookmarks.
A roadmap to accounting for share-based payment awards (2018)
Upon adoption of ASUs 2016-09 and 2017-09
This roadmap provides Deloitte’s insights into and interpretations of the guidance on share-based payment arrangements in ASC 718 (employee awards) and ASC 505-50 (nonemployee awards) as well as in other literature (e.g., ASC 260 and ASC 805).
In 2016 and 2017, the FASB issued ASU 2016-09 and ASU 2017-09 as part of its simplification initiative (i.e., the Board’s effort to reduce the cost and complexity of current U.S. GAAP while maintaining or enhancing the usefulness of the related financial statement information). The ASUs significantly simplified the application of ASC 718 to employee share-based payment arrangements, and while they are not yet effective for all entities, the guidance in this Roadmap is written as if adoption has occurred.
In addition, the FASB in June 2018 issued ASU 2018-07, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on share-based payments granted to nonemployees is aligned with the requirements for share-based payments granted to employees. Accordingly, the ASU supersedes ASC 505-50 and expands the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees.
For a discussion of the guidance on share-based payment awards before the ASUs’ adoption, see Deloitte’s 2015 edition of this Roadmap.