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Service condition belongs in an award-by-award timeline. A service condition requires the grantee to provide service for a stated period or under stated circumstances. Place the service dates on the award timeline and distinguish service from operating targets and market-price outcomes.
Apply it
An award that vests only if an employee remains for three years contains a service condition. If the supported compensation basis is $150,000 and straight-line attribution applies, annual cost is $50,000 before the entity's forfeiture policy is applied.
Review service condition against share based payment award. Reconcile service condition to requisite service period, the dated service condition evidence, and its final presentation.
Keep the boundary clear
Continued employment can be explicit or implicit, but it is not a market condition. Exercise after vesting is also not the service period unless the terms require service through that later date.
Authority
Read ASC 718-10-30-12 for service and performance conditions on awards.
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Apply this concept
- Explain and apply service condition 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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Use this idea next
- Requisite service period — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
- Share-award forfeiture — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.