For equity-classified awards, the measurement date is the grant date (i.e., the date on which the measurement of the award is fixed). As discussed in Chapter 3, the service inception date may precede the grant date for both employee and nonemployee awards. As a result, even though an entity may begin to record compensation cost before the grant date, the fair-value-based measure of an equity-classified award is not fixed until the grant date. In periods before the grant date, compensation cost is remeasured on the basis of the award’s fair-value-based measure at the end of each reporting period to the extent that service has been rendered in proportion to the total requisite service period. See Section 3.6.4 for guidance on accounting for a share-based payment award when the service inception date precedes the grant date.
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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.