13.1 Disclosure Objective
ASC 718 specifies the information entities must disclose about their share-based payment arrangements in the notes to the financial statements. The disclosure objectives related to such arrangements are outlined in ASC 718-10-50-1.
ASC 718-10
50-1 An entity with one or more share-based payment arrangements shall disclose information that enables users of the financial statements to understand all of the following:
- The nature and terms of such arrangements that existed during the period and the potential effects of those arrangements on shareholders
- The effect of compensation cost arising from share-based payment arrangements on the income statement
- The method of estimating the fair value of the equity instruments granted (or offered to grant), during the period
- The cash flow effects resulting from share-based payment arrangements.
This disclosure is not required for interim reporting. For interim reporting see Topic 270. See Example 9 (paragraphs 718-10-55-134 through 55-137) for an illustration of this guidance.
See Section 13.3 for examples of the disclosures required under ASC 718.