Deloitte
Accounting Research Tool
...
Chapter 10 — Business Combinations

10.1 Replacement of Acquiree Awards

10.1 Replacement of Acquiree Awards

ASC 718-20
Equity Restructuring or Business Combination
35-6 Exchanges of share options or other equity instruments or changes to their terms in conjunction with an equity restructuring or a business combination are modifications for purposes of this Subtopic. An entity shall apply the guidance in paragraph 718-20-35-2A to those exchanges or changes to determine whether it shall account for the effects of those modifications. Example 13 (see paragraph 718-20-55-103) provides further guidance on applying the provisions of this paragraph. See paragraph 718-10-35-10 for an exception.

Footnotes

1
While the term “fair-value-based measure” is used in this chapter, ASC 718 permits the use of a calculated value or an intrinsic value in specified circumstances. Accordingly, the guidance in this chapter also applies in situations in which a calculated or an intrinsic value is used.