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Share-award modification belongs in an award-by-award timeline. A modification changes an award's terms or conditions and enters modification accounting when the scope criteria are met. Preserve the original and modified terms, fair values, vesting conditions, classifications, and change date.
Apply it
An entity lowers an option exercise price. The modified award's fair value is $140,000, and the original award's value at that date is $110,000. The incremental fair value is $30,000 before applying the full recognition model.
Review share-award modification against share based payment award. Reconcile share-award modification to grant date fair value, the dated share-award modification evidence, and its final presentation.
Keep the boundary clear
A change made only to preserve value during a qualifying equity restructuring may be outside modification accounting when the stated conditions are met. Lower total expense is never the scope test.
Authority
Read ASC 718-10-35-10A for changes excluded from modification accounting.
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- Equity-classified share award — Apply
To apply this concept: Required. This earlier idea supplies the scope, timing, or measurement basis needed here.