Appendix E — Roadmap Updates for 2026 | DART – Deloitte Accounting Research Tool

...

Appendix E — Roadmap Updates for 2026

The table below summarizes the substantive changes made in the 2026 edition of this Roadmap.

Section	Title	Description
2.2	Definition of Employee	Added Changing Lanes to discuss the amended definition of “employee” under ASU 2024-03.
2.7	Rabbi Trusts	Updated section (and subsequent subsections) to clarify the guidance on rabbi trusts and to discuss the accounting for deferred compensation arrangements.
2.12	Escrowed Share Arrangements	Updated discussion of the accounting for arrangements with escrow-like features that are not held in a formal escrow account.
3.4.3	Repurchase Features That Function as Vesting Conditions	Added Example 3-14 to illustrate the accounting for a modification that permits early exercise of stock options that remain nonvested for accounting purposes. In addition, added Example 3-15 to illustrate that a share repurchase feature may function as an in-substance service condition and cause an award that is legally vested to remain nonvested for accounting purposes until the substantive vesting date. Renumbered subsequent examples.
3.6.6.1	Retirement Eligibility	Added discussion of determining the service period for awards granted to retirement-eligible grantees with advance-notice requirements.
3.7.2.1	Liquidity Events and MOIC and IRR Targets	Revised and expanded section to incorporate discussion of MOIC targets and to address vesting conditions, the requisite service period, and recognition.
3.10	Dividend-Protected Awards	Amended Example 3-40 (formerly Example 3-38) and added Example 3-41 to clarify the accounting for forfeitures as they occur. Added Example 3-42 to illustrate the accounting for non-forfeitable dividends with. Added Example 3-43 to illustrate the accounting when the number of awards expected to be forfeited must be estimated. Renumbered subsequent examples.
3.11.2	Nonrecourse Notes	Updated discussion and added Example 3-45 to illustrate two acceptable approaches for valuing an in-substance option when shares are exchanged for a nonrecourse note. Renumbered remaining example.
4.12	Valuation of Nonpublic Entity Awards	Amended Changing Lanes to reflect the working draft issued by the AICPA’s Financial Reporting Executive Committee.
4.12.3.1	Entity Purchases of Shares From Grantees	Expanded discussion to clarify the application of ASC 718 to share repurchases, including the evaluation of whether the repurchase includes a compensatory element.
4.12.3.2	Investor Purchases of Shares From Grantees	Added Example 4-6 on the recognition of compensation cost arising from an investor’s purchase of common shares from employees. Renumbered subsequent examples.
5.3.1.1	Repurchase Features — Noncontingent Puttable Stock Awards	In Example 5-10, clarified that the award represents a tandem award.
5.4.4	Broker-Assisted Cashless Exercise	Added Example 5-22 to illustrate classification considerations for broker-assisted cashless exercises of options in foreign jurisdictions with legal ownership restrictions. Renumbered subsequent examples.
6.3.1	Probable-to-Probable Modifications	Added Example 6-9 to illustrate a modification of an award to extend the post-termination exercise period. Renumbered subsequent examples.
6.3.2	Probable-to-Improbable Modifications	Added considerations related to the treatment of compensation cost for a probable-to-improbable modification.
6.3.3.1	Modification in Connection With a Change in Status or Role Responsibilities	Renamed section and added discussion of the treatment of an award that vests when a nonsubstantive service condition is met.
6.5.1.1	Original Award Contains a Nondiscretionary Antidilution Provision	Expanded discussion and added Example 6-24 (amended and renumbered from Example 6-37) illustrating the treatment of awards with nondiscretionary antidilution provisions that are trigged by the payment of a large, nonrecurring cash dividend. Renumbered subsequent examples.
6.5.2.2	Classification of Awards in a Spin-Off	Expanded discussion and added Example 6-27 to illustrate the accounting when employees retain their awards and maintain the contractual terms of the original grant agreement in a spin-off transaction. Renumbered subsequent examples.
6.10.2	Cash Settlements Versus Modifications	Added Example 6-40 to replace the guidance in former Example 6-37 and illustrate a modification of stock options that is accounted for in part as a cash settlement of the original award. Renumbered subsequent examples.
Chapter 10	Business Combinations	Relocated chapter to Section 6.2.3 of Deloitte’s Roadmap Business Combinations.
12.1.5	Presentation of Awards With Repurchase Features That Function as Vesting Conditions or That Are Purchased With a Nonrecourse Note	Renamed section and added considerations related to awards that are purchased with a nonrecourse note.
13.2	Minimum Disclosures	Added discussion of SEC staff inquiries related to unrecognized compensation for awards that vest upon the occurrence of an IPO.
14.4	Initial Measurement	Expanded Changing Lanes to address forfeiture policy elections for nonemployee awards under ASU 2025-04.

Confidential and Proprietary — for Use Solely by Authorized Personnel

This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.