Grant Date vs. Service Inception Date Under ASC 718
The growth in the diversity and complexity of performance-based equity awards is giving rise to ongoing challenges in correctly specifying the grant date and service inception date. Errors in specifying either variable directly impact the timing and/or amount of expense recognized.
This Issue Brief highlights the key guidance in ASC 718 to apply when evaluating a performance-based equity award to determine the grant date(s) and service inception date(s). Using a case-based format, this paper explains how small details in grant agreements can yield substantially different accounting answers.
Don’t miss another topic! Get insights about HR advisory, financial reporting, and valuation directly via email: