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Grant-date fair value belongs in an award-by-award timeline. Grant-date fair value is the supported measurement of an equity-classified award on the date the grant-date criteria are met. Approval, mutual understanding, service inception, grant date, vesting, exercise, and settlement can occur on different dates.
Apply it
If an award is approved on March 1 but employees do not understand its key terms until March 15, March 1 is not automatically the grant date. Once the date is supported, a supplied $240,000 fair value becomes the measurement basis for the equity award.
Review grant-date fair value against share based payment award. Reconcile grant-date fair value to equity classified share award, the dated grant-date fair value evidence, and its final presentation.
Keep the boundary clear
This concept applies a supplied fair-value conclusion. Selecting an option-pricing model, volatility, expected term, or other valuation input needs separate evidence and expertise.
Authority
Read ASC 718-10-30-6 for the grant-date measurement objective for equity instruments.
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Apply this concept
- Explain and apply grant-date fair value within a reconciled award-timeline workpaper using supplied authoritative facts.
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Build on these ideas
- Share-based payment award — Apply
To apply this concept: Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
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- Market condition on a share award — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.