On this page
Share-based payment award belongs in an award-by-award timeline. A share-based payment award exchanges an entity's shares, options, other equity instruments, or share-price-based amounts for goods or services. Start with the recipient and the purpose of the exchange, then document the award terms and related arrangements.
Apply it
An employee receives 20,000 restricted share units for three years of service. The units are within Topic 718 because the entity receives employee service in exchange for a share-based instrument. A warrant sold to an investor as financing follows another scope route.
Review share-based payment award against equity classified share award. Reconcile share-based payment award to liability classified share award, the dated share-based payment award evidence, and its final presentation.
Keep the boundary clear
The award's name does not settle scope, classification, measurement, or recognition. Customer awards, financing instruments, business-combination awards, and investor grants require the specific guidance for those facts.
Authority
Read ASC 718-10-15-3 for transactions in which a grantor receives goods or services.
Put the concept to work
Apply this concept
Learning resources
Choose a lesson, try an application, or inspect the sources behind this concept.
Build on these ideas
- Expense — Understand
To apply this concept: Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
Lessons
Worked examples and cases
Practice
Common mistaken ideas
Sources
Standard references
Broader topics
Related concepts
Show 3 more related concepts
Use this idea next
- Equity-classified share award — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
- Grant-date fair value — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
- Liability-classified share award — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
Show 3 more next steps
- Performance condition on a share award — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
- Service condition — Apply
Required level here: apply. Required. This earlier idea supplies the scope, timing, or measurement basis needed here.
- Share-based-payment cash flow — Understand
Required level here: apply. Required. The cash-flow interface assumes a supported award accounting route.