Required subscriptions
- US GAAP
This Roadmap provides Deloitte’s insights into and interpretations
of the guidance on share-based payment arrangements in ASC 718 (employee and
nonemployee awards) and ASC 505-50 (nonemployee awards before the adoption of ASU
2018-07) as well as in other literature (e.g., ASC 260 and ASC 805).
In June 2018 the FASB issued ASU 2018-07, which simplifies the
accounting for share-based payments granted to nonemployees for goods and services.
ASU 2018-07 aligns most of the guidance on nonemployee share-based payment awards
with the requirements for employee share-based payment awards. Before adopting ASU
2018-07, entities used ASC 505-50 to account for share-based payment awards issued
to nonemployees in exchange for goods or services. 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.
It is assumed in this Roadmap that an entity has adopted ASU
2018-07. The changes to the accounting framework introduced by ASU 2018-07 are
reflected throughout the Roadmap to align with the revised terminology and
definitions in ASC 718. Chapter 9 addresses the accounting for nonemployee awards to
the extent that it is different from the accounting for employee awards discussed
throughout the Roadmap. Sections 9.1 through 9.10 are intended for entities that
have adopted ASU 2018-07. However, Sections 9.11 through 9.21 continue to reflect
the guidance an entity would apply before adopting ASU 2018-07.
In November 2019, the FASB issued ASU 2019-08, which clarifies the
accounting for share-based payments issued as consideration payable to a customer
under ASC 606. Under the ASU, entities apply the guidance in ASC 718 to measure and
classify share-based payments issued to a customer that are not in exchange for a
distinct good or service (i.e., share-based sales incentives).
The guidance in the Roadmap has been updated to reflect ASU 2019-08.
However, the discussion of share-based-payments issued as sales incentives to
customers is primarily included in Chapter 14. Section 9.2.1 provides guidance for
entities that have not adopted ASU 2019-08.
For readers reporting under IFRS® Standards, we have
updated Appendix A, which summarizes some of the significant differences between ASC
718 and IFRS 2 in the accounting for share-based payment awards. For a summary of
all the substantive changes made to the Roadmap since our issuance of the previous
edition, see Appendix D.