Appendix E — Roadmap Updates for 2025
The table below summarizes the
substantive changes made in the 2025 edition of this Roadmap.
|
Section
|
Title
|
Description
|
|---|---|---|
|
Removed discussion of the SEC’s clawback
rule, added reference to Deloitte’s Heads Up on
amendments to the AICPA Valuation Guide, and added
discussion of consideration payable to a customer.
| ||
|
Profits Interests and Other Awards Issued by
Pass-Through Entities
| Added Examples 2-6 and 2-7 to illustrate scope considerations related to profits interests. Renumbered subsequent examples. | |
|
Consolidated Financial Statements
|
Added a cross-reference to Deloitte’s
Roadmap Noncontrolling
Interests, which discusses the
presentation of such interests for a subsidiary that issues
equity-classified share-based payment awards to employees or
nonemployees.
| |
|
Performance Condition
| Added Example 3-11, which illustrates how to determine whether vesting conditions based on sustainability targets meet the definition of a performance condition. Renumbered subsequent examples. | |
|
Vesting Begins Before the Grant Date
|
Added new section, including Example 3-23, which
illustrates how to recognize expense for awards with graded
vesting when vesting begins before the grant date occurs.
Renumbered preceding section and subsequent examples.
| |
|
Valuation of Nonpublic Entity Awards
|
Added Changing
Lanes to discuss the working draft of two
revised chapters of the AICPA Valuation Guide.
| |
|
ASC 480
|
Updated discussion of the application of the
guidance in ASC 480 to share-based payment awards. Added
Examples 5-4 and
5-5, which
illustrate situations in which an award with a variable
number of shares should be classified as equity and when an
award with a variable number of shares should be classified
as a liability, respectively. Also added Example 5-6, which
illustrates how to evaluate the classification of an option
on a puttable share. Renumbered subsequent examples.
| |
|
Repurchase Features — Contingently Callable
Stock Awards
|
Added Example 5-16,
which illustrates how to evaluate the classification of an
award in which a company has a repurchase right for a period
after the termination of an employee. Also added
Example 5-17, which illustrates how
to evaluate the classification of an award with a right of
first refusal. Renumbered subsequent examples.
| |
|
Modification in Connection With a Change in
Status
|
Enhanced discussion and added Example 6-11, which
illustrates a change in employment status that is accounted
for as a forfeiture of an old award and the grant of a new
award. Renumbered subsequent examples.
| |
|
Improbable-to-Improbable Modification
|
Added discussion of the modification of an
award to remove an improbable performance condition.
| |
|
Original Award Contains a Nondiscretionary Antidilution
Provision
|
Added Example
6-22 to illustrate the impact of adjusting
the exercise price of a one-time extraordinary dividend for
an original award that contains a nondiscretionary
antidilution provision. Renumbered subsequent examples.
| |
|
Modification to Add a Nondiscretionary Antidilution Provision
in Contemplation of an Equity Restructuring
|
Added discussion of a modification that is made in
contemplation of an equity restructuring.
| |
|
Scope
|
Added Changing
Lanes to discuss the FASB’s proposed ASU on
share-based consideration payable to a customer.
| |
|
Accounting for Share-Based Consideration Payable to a
Customer
|
Updated entire chapter to reflect ASU 2025-04.
| |
|
Recognition
|
Added Example 14-7 to
demonstrate that ASU 2025-04’s amendments to the variable
consideration constraint guidance in ASC 606 do not apply to
share-based consideration payable to a customer either
before or after the grant date.
| |
|
Comparison of U.S. GAAP and IFRS Accounting Standards
|
Added discussion of the difference between
IFRS Accounting Standards and U.S. GAAP related to modified
awards whose classification changes from equity to
liability.
|