Appendix E — Roadmap Updates for 2024
The tables below summarize the
substantive changes made in the 2024 edition of this Roadmap.
New Content
Section
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Title
|
Description
|
---|---|---|
Modification in Connection With a Change
in Status
|
Added new section and Example
6-10, which illustrates how to account
for a change in employee status when the grantee enters
into a separation and consulting agreement for a minimum
number of hours. Renumbered subsequent sections and
examples.
| |
Repurchases That Change Substantive
Terms
|
Added new section and Example 6-36, which
illustrates how to account for a put option that is
contingent on a preferred financing round. Renumbered
subsequent examples.
| |
Changes to the Requisite Service
Period
|
Added section to address the two
acceptable approaches for determining the requisite
service period for a liability-classified award whose
requisite service period is based on a market
condition’s derived service period. Renumbered
subsequent sections.
|
Amended Content
Section
|
Title
|
Description
|
---|---|---|
Clarified that a share-based payment
award may also include liabilities that are based, at
least in part, on the entity’s equity or liabilities
that require or may require settlement by issuing
shares. Also noted the issuance of ASU 2024-01, which
addresses profits interests and similar awards.
| ||
General
|
Added Changing Lanes to discuss ASU
2023-05, which addresses the accounting by a joint
venture for the initial contribution of nonmonetary and
monetary assets to the venture.
| |
Profits Interests and Other Awards
Issued by Pass-Through Entities
|
Replaced portions of the 2006 SEC’s
staff speech related to profits interest with a
discussion of profits interest awards that allocate a
portion of a general partnership’s carried interest as
compensation for managing a specific investment or fund
of investments. Also added Changing
Lanes to discuss ASU 2024-01, which
addresses profits interests and similar awards, and to
note that the conclusions reached in the ASU’s four
cases would be consistent with nonauthoritative
interpretations that entities apply today.
| |
Market Condition
|
Added “specified market capitalization”
as an example of a market condition.
| |
Graded Vesting for Employee Awards
|
Expanded discussion in Example
3-18 of two acceptable methods for
recognizing compensation cost ratably over an award’s
requisite service period when the award’s graded vesting
is unequal.
| |
Expected Dividends
|
Added discussion of the valuation of options that provide
for cash payments to option holders if dividends are
paid to holders of shares.
| |
Modification of Stock Options During Blackout Periods
|
Added discussion of the impact of legal counsel’s opinion
on the classification of stock options during the
blackout period.
| |
Statement of Cash Flows
|
Replaced discussion with reference to
Section 7.3 of
Deloitte’s Roadmap Statement of Cash Flows.
| |
Earnings per Share
|
Replaced discussion with reference to
Chapter 7 of
Deloitte’s Roadmap Earnings per Share.
| |
Interim Reporting
|
Added discussion of what an entity might consider when
determining which ASC 718 disclosures to include in
interim financial statements.
| |
Initial Measurement
|
Added Changing
Lanes to discuss the FASB’s new project
on share-based consideration payable to a customer and
its forthcoming proposed ASU related to how to treat the
conditions in a share-based sales incentive that are
tied to customer purchase levels (or to a customer’s
remaining purchases for a specified period).
|