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Requisite service period belongs in an award-by-award timeline. The requisite service period is the period in which the grantee provides service in exchange for the award. It may be explicit, implicit, or derived from other terms. The attribution schedule should state the supported period for each award or tranche.
Apply it
A $360,000 award requires service from July 1, 20X1, through June 30, 20X4. With straight-line attribution and no other changes, six months of service in 20X1 produces $60,000 of cost.
Review requisite service period against service condition. Reconcile requisite service period to graded vesting, the dated requisite service period evidence, and its final presentation.
The requisite service period record ties service condition to its source date, measured amount, and graded vesting effect.
Keep the boundary clear
Grant date and service inception can differ. Vesting, exercise, and settlement dates do not replace the requisite service period merely because they are easier to observe.
Authority
Read ASC 718-10-35-2 for recognition over the requisite service period.
Put the concept to work
Apply this concept
- Explain and apply requisite service period within a reconciled award-timeline workpaper using supplied authoritative facts.
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- Service condition — Apply
To apply this concept: Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
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- Graded vesting — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
- Unrecognized compensation cost — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.