Handbooks | January 2020

Handbook: Share-based payments

KPMG explains accounting for share-based payments, ASC 718, in detail.  We provide guidance and interpretations, including Q&As and updated examples for common practice issues.


ASC 718

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

Relevant dates

  • Effective immediately

Key impacts

  • Answers to 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 EPS
  • Transition and effective dates
  • Business combinations
  • Equity-based transactions with nonemployees 
  • Employee stock purchase plans 

Related content

KPMG’s Defining Issues on the latest amendments to ASC 718

FASB affirms decisions on accounting for share-based consideration payable to a customer

Spotlight on contributors

Regina Croucher

Regina Croucher

Partner, Dept. of Professional Practice, KPMG US

Holly Driscoll

Holly Driscoll

Senior Manager, Audit, KPMG US



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