14.1 Background
The scope of ASC 718 does not include the recognition of share-based
payments issued to a customer that (1) are not in exchange for a distinct good or
service or (2) are in exchange for a distinct good or service but can result in a
reduction of the transaction price in accordance with ASC 606-10-32-26 (i.e.,
“share-based consideration payable to a customer”). Such recognition must be accounted
for under ASC 606 (i.e., as a reduction of revenue). However, the measurement (and
measurement date) of share-based consideration payable to a customer and its
classification are subject to the guidance in ASC 718.
See Chapter 6 of Deloitte’s Roadmap Revenue Recognition for additional guidance
on consideration payable to a customer.