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Market condition on a share award belongs in an award-by-award timeline. A market condition depends on the issuer's share price, intrinsic value, or a specified market comparison. Its effect enters grant-date fair value rather than a later probability estimate for expense recognition.
Apply it
An award requires three years of service and a total shareholder return above a peer index. If the employee supplies the required service, missing the market target alone does not reverse cost measured with that condition in grant-date fair value.
Review market condition on a share award against performance condition share award. Reconcile market condition on a share award to grant date fair value, the dated market condition on a share award evidence, and its final presentation.
Keep the boundary clear
Do not treat a market condition as an operating performance condition. The distinction changes both measurement and the reason that recognized cost may be reversed.
Authority
Read ASC 718-10-30-14 for including a market condition in grant-date fair value.
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Build on these ideas
- Grant-date fair value — Apply
To apply this concept: Required. This earlier idea supplies the scope, timing, or measurement basis needed here.