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Appendix E — Roadmap Updates for 2024

Appendix E — Roadmap Updates for 2024

Appendix E — Roadmap Updates for 2024

The tables below summarize the substantive changes made in the 2024 edition of this Roadmap.

New Content

Section
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).