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Chapter 7 — Liability-Classified Awards

7.4 Modifications

7.4 Modifications

ASC 718-30
Modification of an Award
35-5 A modification of a liability award is accounted for as the exchange of the original award for a new award. However, because liability awards are remeasured at their fair value (or intrinsic value for a nonpublic entity that elects that method) at each reporting date, no special guidance is necessary in accounting for a modification of a liability award that remains a liability after the modification (see Example 15, Case C [paragraph 718-20-55-135] for what happens when the modification causes the award to no longer be a liability).

Footnotes

1
See ASC 718-20-55-122A through 55-122C for considerations related to the application of Example 16 to nonemployee awards.