718 Dsivlgcplzip ●

: 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.

: It applies to all share-based payment transactions with both employees and nonemployees . 718 dsivlgcplzip

: It generally does not apply to share-based payments used for financing the issuer or those granted as part of a contract with a customer (which falls under Topic 606 ). Recent Updates and Simplifications : The core requirement is to recognize the

: The FASB expanded Topic 718 to align the accounting for nonemployee share-based payments more closely with the rules for employee awards. Recent Updates and Simplifications : The FASB expanded

: 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.