U.S. GAAP Codification of Accounting Standards

U.S. GAAP Codification Accounting Standards, ASC


Principles of Accounting Intermediate Financial AccountingU.S. GAAP Textbook
Accounting by Topic Accounting Terms Dictionary

U.S. GAAP Accounting Standards
Codification Topic 718: Compensation-Stock Compensation


Codification Topic 718
Compensation-Stock Compensation


SFAS No. 123R, Revised in December 2004
"Share-Based Payment"

Recognition Principle
Recognize when goods and services are received.

Classification
(a) Awards classified as equity
(b) Awards classified as liabilities

Awards classified as equity
Measurement date: Grant date

Measurement principle
(a) Employees --> Measured at Fair Value (FV) of Equity Instruments issued
(b) Nonemployees 
--> FV of Equity Instruments issued
or 
--> FV of goods and services if more reliably measured

Compensation costs are recognized over the requisite service period.

Awards classified as liabilities
Measurement date: Settlement date

Measurement principle
--> Measured at FV of liabilities
--> Remeasured at each reporting date
--> Until settlement date

Changes in FV of liabilities are recognized as compensation costs

Nonpublic entities have a choice of (a) or (b)
(a) FV of liabilities: preferable 
(b) Intrinsic value

If requisite service is rendered, but options are not exercised
--> previously recognized compensation costs are not reversed

If performance conditions are satisfied, but market conditions are not satisfied
--> previously recognized compensation costs are not reversed
--> market conditions are not considered as vesting conditions

Reload options are not considered in determining the FV at grant date
--> subsequent grant is treated as a separate award



   Codification Topic 718
   Compensation-Stock Compensation
 
Subtopics of Codification Topic 718
 
   718-10 Overall
   718-20 Awards classified as Equity
   718-30 Awards classified as Liabilities
   718-40 Employee stock ownership plans
   718-50 Employee share purchase plans   
 
Accounting Terms of Codification Topic 718-10
 
   Award
   Blackout period
   Broker-assisted cashless exercise
   Calculated value
   Call option
   Closed-form model
   Combination award
   Derived service period
   Economic interest in an entity
   Employee
   Employee stock ownership plan
   Equity restructuring
   Explicit service period
   Fair value
   Freestanding financial instrument
   Grant date
   Implicit service period
   Intrinsic value
   Lattice model
   Market condition
   Measurement date
   Modification
   Nonpublic entity
   Nonvested shares
   Option
   Performance condition
   Probable
   Public entity
   Purchased call option
   Related parties
   Reload feature and reload option
   Requisite service period
   Restricted share
   Restriction
   Securities and exchange commission registrant
   Service condition
   Service inception date
   Settlement of an award
   Share option
   Share unit
   Share-based payment arrangements
   Share-based payment transactions
   Tandem award
   Terms of a sh
are-based payment award
   Time value
   Vest
   Volatility   
 
Accounting Terms of Codification Topic 718-20
 
   Cross volatility
   Excess tax benefits
   Replacement entity
   Short-term inducement

 
Accounting Terms of Codification Topic 718-30
    
 
Accounting Terms of Codification Topic 718-40
 
   Allocated shares
   Committed-to-be-released shares
   Direct loan
   Employer loan
   Indirect loan
   Suspense shares
   Top-up shares    

 
Accounting Terms of Codification Topic 718-50
 


   Other Topics at the Codification 700 
Accounting Standards Codification, ASC, Overview
 
ASC Codification Topic 705: Cost of Sales and Services
 
ASC Codification Topic 710: Compensation-General
ASC Codification Topic 712: Compensation-Nonretirement Postemployment Benefits
ASC Codification Topic 715: Compensation-Retirement Benefits
ASC Codification Topic 718: Compensation-Stock Compensation
 
ASC Codification Topic 720: Other Expenses
 
ASC Codification Topic 730: Research and Development
 
ASC Codification Topic 740: Income Taxes

   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

U.S. GAAP by Topic
Accounting Topics
  

Copyright © AccountingInfo.comTM  Legal Disclaimer