Preface

We are pleased to present the 2023 edition of Share-Based Payment Awards. This Roadmap provides Deloitte’s insights into and interpretations of the guidance on share-based payment arrangements in ASC 7181 related to employee and nonemployee awards and in other literature (e.g., ASC 260 and ASC 805).

Note that in this edition, it is assumed that an entity has already adopted:

• ASU 2020-06, which simplifies the accounting for convertible instruments and equity-linked financial instruments.
• ASU 2021-07, which allows nonpublic entities to use, as a practical expedient, “the reasonable application of a reasonable valuation method” to determine the current price input of equity-classified share-based payment awards issued to both employees and nonemployees. (However, this ASU does not significantly affect the guidance in this publication.)

For a list of significant changes made since the issuance of the 2022 edition of the Roadmap, see Appendix E.

This publication is not a substitute for the exercise of professional judgment, which is often essential to applying the accounting requirements for share-based payment awards. It is also not a substitute for consulting with Deloitte professionals on complex accounting questions and transactions.

We hope that you find this publication a valuable resource when considering the accounting guidance on share-based payment arrangements.