718 Dsivlgcplzip Apr 2026

For detailed technical guidance, you can refer to the official FASB Accounting Standards Codification (ASC) 718.

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: The FASB expanded Topic 718 to align the accounting for nonemployee share-based payments more closely with the rules for employee awards. For detailed technical guidance, you can refer to

: This includes standard employees, certain leased employees, and nonemployee directors. Learn more : The FASB expanded Topic 718

: It applies to all share-based payment transactions with both employees and nonemployees .

: 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.

: Companies must "expense options," meaning they record the value of the equity granted as an expense on their income statement over the period the recipient provides the service (the vesting period). Scope and Applicability