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Performance condition on a share award belongs in an award-by-award timeline. A performance condition is tied to a specified operation or activity of the entity, another entity, or the grantee. Record the target, measurement period, probability conclusion, evidence date, and effect of later changes.
Apply it
An award vests if cumulative operating income reaches $12 million while the employee remains in service. Under the supplied probable conclusion, recognize the applicable cost; reverse it if the target ultimately fails under the relevant model.
Review performance condition on a share award against service condition. Reconcile performance condition on a share award to market condition share award, the dated performance condition on a share award evidence, and its final presentation.
Keep the boundary clear
A target based on the issuer's share price or return relative to a market index is a market condition. The accountant should apply, not invent, management's supported probability evidence.
Authority
Read ASC 718-10-25-20 for recognition for a performance condition.
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- Share-based payment award — Apply
To apply this concept: Required. This earlier idea supplies the scope, timing, or measurement basis needed here.