A Roadmap to Accounting for Share-Based Payment Awards (November 2020)
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This Roadmap provides Deloitte’s
insights into and interpretations of the guidance on share-based payment arrangements in
ASC 718 (employee and nonemployee awards) and ASC 505-50 (nonemployee awards before the
adoption of ASU 2018-07) as well as in other literature (e.g., ASC 260 and ASC 805).
In November 2019, the FASB issued ASU
2019-08, which clarifies the accounting for share-based payments issued as consideration
payable to a customer under ASC 606. Under the ASU, entities apply the guidance in ASC
718 to measure and classify share-based payments issued to a customer that are not in
exchange for a distinct good or service (i.e., share-based sales incentives). The
guidance in the 2020 edition of the Roadmap has been updated to reflect ASU 2019-08.
However, the discussion of share-based-payments issued as sales incentives to customers
is primarily included in Chapter 14. Section 9.2.1 provides guidance for entities that
have not adopted ASU 2019-08.
This Roadmap replaces the Deloitte Q&As that were contained in ASC
718. To find the text in the Roadmap that corresponds to a former Q&A, select the
“Share-Based Payment Awards” tab at the bottom of the Q&A to Roadmap Quick Reference Guide and
search for the Q&A’s number or title.
Be sure to check out other titles in Deloitte’s Roadmap
series, our comprehensive, easy-to-understand collection of
accounting guides on selected topics of broad interest to the financial reporting
community.