Handbooks   |   January 2018

Accounting for share-based payments

KPMG’s guidance and interpretation of ASC 718. KPMG explains the accounting for share-based payments in detail, providing examples and analysis.


  • All companies with stock compensation (related to employees or nonemployees)

Relevant dates

  • Effective immediately

Key impacts

  • Provides interpretive guidance on FASB ASC Topic 718, including illustrative examples and Q&As
  • Incorporates ASU 2016-09: improvements to employee share-based payment accounting

Report contents

  • Scope
  • Measurement of awards
  • Classification of awards as either liabilities or equity
  • Recognition of compensation costs
  • Modification of awards
  • Income tax issues associated with share-based payment arrangements
  • Disclosures and earnings per share
  • Transition and effective dates
  • Business combinations
  • Equity-based transactions with nonemployees
  • Employee stock purchase plans

Spotlight on contributors

Regina Croucher

Regina Croucher

Partner, Audit, DPP, KPMG (US)

+1 816-802-5840
Jason Thomas

Jason Thomas

Senior Manager, Dept. of Professional Practice, KPMG (US)

+1 212-954-3531



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