Handbooks  |  March 2019

Handbook: Accounting for share-based payments

In this handbook, KPMG explains the accounting for share-based payments (ASC 718) in detail. We provide guidance and interpretations, including detailed Q&As and examples which are updated for ASU 2018-07 and common practice issues. 


ASC Topic 718 (ASU 2018-07

  • All companies with employee or nonemployee share-based payment awards

Relevant dates

  • Effective immediately

Key impacts

  • Updated for the amendments in ASU 2018-07 
  • Q&As that answer the questions we are encountering in practice
  • Examples and observations to explain key concepts

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
  • Employee stock purchase plans
  • Appendix I: Equity-based transactions with nonemployees

Related content

Spotlight on contributors:

Regina Croucher

Regina Croucher

Partner, Audit, DPP, KPMG (US)

+1 816-802-5840
Daniel Zamora

Daniel Zamora

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

+1 212-954-3532
Also Filed Under
  • Detail Guidance
  • Share-based compensation
  • Handbook
  • ...



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