Share-based payment

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Share-based payment

FASB Statement 123(R), Share-Based Payment (FASB Accounting Standards Codification™ (ASC) 718, Compensation – Stock Compensation), requires all entities (with limited exceptions) to recognize the fair value of share-based payment awards and thus entities must address challenging issues in accounting for options and other share-based payment awards.

Some of the complex issues entities must address include:

determining whether awards should be classified as liabilities or in equity,
refining valuation assumptions, and
accounting for income taxes.

The guidance and resources assembled here are meant to provide you with useful background and the latest updates as you face the task of addressing ASC 718 requirements. Note, however, that these materials are not a substitute for referral to and application of the authoritative guidance.

Related documents

Share-based payment (September 13, 2011)
This bulletin updates and supersedes NDS 2009-12, “Share-based payment: FASB Statement 123R,” and provides implementation guidance relating to accounting for equity awards granted to both employees and nonemployees as provided for in FASB and related SEC guidance.
Taxation of stock options and restricted stock: the basics and beyond
In this white paper, Compensation and Benefits Partner Eddie Adkins presents not only the basic tax rules that apply to stock options and restricted stock, but also more complex issues and planning considerations.

This website supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document we encourage you to contact us or an independent tax advisor to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with, or attached to this document is not intended by Grant Thornton to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

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