: The FASB expanded Topic 718 to align the accounting for nonemployee share-based payments more closely with the rules for employee awards.
: The core requirement is to recognize the cost of services received in exchange for share-based awards based on the fair value of those awards at the grant date. 718 dsivlgcplzip
: This includes standard employees, certain leased employees, and nonemployee directors. : The FASB expanded Topic 718 to align
For detailed technical guidance, you can refer to the official FASB Accounting Standards Codification (ASC) 718. For detailed technical guidance, you can refer to
: Recent updates, such as ASU 2021-07 , provide "practical expedients" allowing private companies to use simplified methods to determine the current price of their underlying shares, rather than more complex public-market valuations.
: It applies to all share-based payment transactions with both employees and nonemployees .