{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/718/10/#50-disclosure","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"718","topic_title":"Compensation—Stock Compensation","subtopic":"718-10","subtopic_title":"Overall","section":{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"718-10-50-1","para":"50-1","html":"
An entity with one or more share-based payment arrangements shall disclose information that enables users of the financial statements to understand all of the following:
  1. a
    The nature and terms of such arrangements that existed during the period and the potential effects of those arrangements on shareholders
  2. b
    The effect of compensation cost arising from share-based payment arrangements on the income statement
  3. c
    The method of estimating the fair value of the equity instruments granted (or offered to grant), during the period
  4. d
    The cash flow effects resulting from share-based payment arrangements.
This disclosure is not required for interim reporting. For interim reporting see Topic 270. See Example 9 (paragraphs
718-10-55-134 through 55-137
) for an illustration of this guidance.
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1An entity with one or more share-based payment arrangements shall disclose information that enables users of the financial statements to understand all of the following:
  1. a
    The nature and terms of such arrangements that existed during the period and the potential effects of those arrangements on shareholders
  2. b
    The effect of compensation cost arising from share-based payment arrangements on the income statement
  3. c
    The method of estimating the fair value of the equity instruments granted (or offered to grant), during the period
  4. d
    The cash flow effects resulting from share-based payment arrangements.
This disclosure is not required for interim reporting. See Example 9 (paragraphs
718-10-55-134 through 55-137
) for an illustration of this guidance.
","snippet":"An entity with one or more share-based payment arrangements shall disclose information that enables users of the financial statements to understand all of the following:\n(a) The nature and terms of such arrangements that…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69ec3ed67005cae34d93794af6b323e96af612e4922be7f8ea77c3182447182b","downloaded_from":"2026-09-10T01:03:46.036Z","last_downloaded_at":"2026-09-10T01:03:46.036Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480429","source_sha256":"7b19d5dd7985816c24a1d03643cf652d11cb7a64f3237b110fc2804e10ed90bf"}},{"citation":"718-10-50-2","para":"50-2","html":"
The following list indicates the minimum information needed to achieve the objectives in paragraph 718-10-50-1 and illustrates how the disclosure requirements might be satisfied. In some circumstances, an entity may need to disclose information beyond the following to achieve the disclosure objectives:
  1. a
    A description of the share-based payment arrangement(s), including the general terms of awards under the arrangement(s), such as:
    1. 1
      The employee's requisite service period(s) and, if applicable, the nonemployee's vesting period and any other substantive conditions (including those related to vesting)
    2. 2
      The maximum contractual term of equity (or liability) share options or similar instruments
    3. 3
      The number of shares authorized for awards of equity share options or other equity instruments.
  2. b
    The method it uses for measuring compensation cost from share-based payment arrangements.
  3. c
    For the most recent year for which an income statement is provided, both of the following:
    1. 1
      The number and weighted-average exercise prices (or conversion ratios) for each of the following groups of share options (or share units):
      1. i
        Those outstanding at the beginning of the year
      2. ii
        Those outstanding at the end of the year
      3. iii
        Those exercisable or convertible at the end of the year
      4. iv
        Those that during the year were:
        1. 01
          Granted
        2. 02
          Exercised or converted
        3. 03
          Forfeited
        4. 04
          Expired.
    2. 2
      The number and weighted-average grant-date fair value (or calculated value for a nonpublic entity that uses that method or intrinsic value for awards measured pursuant to paragraph 718-10-30-21) of equity instruments not specified in (c)(1), for all of the following groups of equity instruments:
      1. i
        Those nonvested at the beginning of the year
      2. ii
        Those nonvested at the end of the year
      3. iii
        Those that during the year were:
        1. 01
          Granted
        2. 02
          Vested
        3. 03
          Forfeited.
  4. d
    For each year for which an income statement is provided, both of the following:
    1. 1
      The weighted-average grant-date fair value (or calculated value for a nonpublic entity that uses that method or intrinsic value for awards measured at that value pursuant to paragraphs
      718-10-30-21 through 30-22
      ) of equity options or other equity instruments granted during the year
    2. 2
      The total intrinsic value of options exercised (or share units converted), share-based liabilities paid, and the total fair value of shares vested during the year.
  5. e
    For fully vested share options (or share units) and share options expected to vest (or unvested share options for which the employee's requisite service period or the nonemployee's vesting period has not been rendered but that are expected to vest based on the achievement of a performance condition, if an entity accounts for forfeitures when they occur in accordance with paragraph 718-10-35-1D or 718-10-35-3) at the date of the latest statement of financial position, both of the following:
    1. 1
      The number, weighted-average exercise price (or conversion ratio), aggregate intrinsic value (except for nonpublic entities), and weighted-average remaining contractual term of options (or share units) outstanding
    2. 2
      The number, weighted-average exercise price (or conversion ratio), aggregate intrinsic value (except for nonpublic entities), and weighted-average remaining contractual term of options (or share units) currently exercisable (or convertible).
  6. f
    For each year for which an income statement is presented, both of the following (An entity that uses the intrinsic value method pursuant to paragraphs
    718-10-30-21 through 30-22
    is not required to disclose the following information for awards accounted for under that method):
    1. 1
      A description of the method used during the year to estimate the fair value (or calculated value) of awards under share-based payment arrangements
    2. 2
      A description of the significant assumptions used during the year to estimate the fair value (or calculated value) of share-based compensation awards, including (if applicable):
      1. i
        Expected term of share options and similar instruments, including a discussion of the method used to incorporate the contractual term of the instruments and grantees' expected exercise and postvesting termination behavior into the fair value (or calculated value) of the instrument.
      2. ii
        Expected volatility of the entity's shares and the method used to estimate it. An entity that uses a method that employs different volatilities during the contractual term shall disclose the range of expected volatilities used and the weighted-average expected volatility. A nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for it to estimate the expected volatility of its share price, the appropriate industry sector index that it has selected, the reasons for selecting that particular index, and how it has calculated historical volatility using that index.
      3. iii
        Expected dividends. An entity that uses a method that employs different dividend rates during the contractual term shall disclose the range of expected dividends used and the weighted-average expected dividends.
      4. iv
        Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.
      5. v
        Discount for postvesting restrictions and the method for estimating it.
      6. vi
        Practical expedient for current price input. A nonpublic entity that elects to apply the practical expedient in paragraphs
        718-10-30-20C through 30-20F
        shall disclose that election.
  7. g
    An entity that grants equity or liability instruments under multiple share-based payment arrangements shall provide the information specified in paragraph (a) through (f) separately for different types of awards (including nonemployee versus employee) to the extent that the differences in the characteristics of the awards make separate disclosure important to an understanding of the entity's use of share-based compensation. For example, separate disclosure of weighted-average exercise prices (or conversion ratios) at the end of the year for options (or share units) with a fixed exercise price (or conversion ratio) and those with an indexed exercise price (or conversion ratio) could be important. It also could be important to segregate the number of options (or share units) not yet exercisable into those that will become exercisable (or convertible) based solely on fulfilling a service condition and those for which a performance condition must be met for the options (share units) to become exercisable (convertible). It could be equally important to provide separate disclosures for awards that are classified as equity and those classified as liabilities. In addition, an entity that has multiple share-based payment arrangements shall disclose information separately for different types of awards under those arrangements to the extent that differences in the characteristics of the awards make separate disclosure important to an understanding of the entity's use of share-based compensation.
  8. h
    For each year for which an income statement is presented, both of the following:
    1. 1
      Total compensation cost for share-based payment arrangements
      1. i
        Recognized in income as well as the total recognized tax benefit related thereto
      2. ii
        Capitalized as part of the cost of an asset.
    2. 2
      A description of significant modifications, including:
      1. i
        The terms of the modifications
      2. ii
        The number of grantees affected
      3. iii
        The total (or lack of) incremental compensation cost resulting from the modifications.
  9. i
    As of the latest balance sheet date presented, the total compensation cost related to nonvested awards not yet recognized and the weighted-average period over which it is expected to be recognized
  10. j
    Subparagraph superseded by Accounting Standards Update No. 2016-09.
  11. k
    If not separately disclosed elsewhere, the amount of cash used to settle equity instruments granted under share-based payment arrangements
  12. l
    A description of the entity's policy, if any, for issuing shares upon share option exercise (or share unit conversion), including the source of those shares (that is, new shares or treasury shares). If as a result of its policy, an entity expects to repurchase shares in the following annual period, the entity shall disclose an estimate of the amount (or a range, if more appropriate) of shares to be repurchased during that period.
  13. m
    If not separately disclosed elsewhere, the policy for estimating expected forfeitures or recognizing forfeitures as they occur.
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Another item of minimum information needed to achieve the objectives in paragraph 718-10-50-1 is the following:
  1. a
    If not separately disclosed elsewhere, the amount of cash received from exercise of share options and similar instruments granted under share-based payment arrangements and the tax benefit from stock options exercised during the annual period
","snippet":"Another item of minimum information needed to achieve the objectives in paragraph 718-10-50-1 is the following:\n(a) If not separately disclosed elsewhere, the amount of cash received from exercise of share options and si…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41990208d8f3cb7408d14e50de30173cb48f6fec3200bba53beefbaaf929a65f","downloaded_from":"2026-09-10T01:03:46.036Z","last_downloaded_at":"2026-09-10T01:03:46.036Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480429","source_sha256":"7b19d5dd7985816c24a1d03643cf652d11cb7a64f3237b110fc2804e10ed90bf"}},{"citation":"718-10-50-3","para":"50-3","html":"
Paragraph not used.
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In addition to the information required by this Topic, an entity may disclose supplemental information that it believes would be useful to investors and creditors, such as a range of values calculated on the basis of different assumptions, provided that the supplemental information is reasonable and does not lessen the prominence and credibility of the information required by this Topic. The alternative assumptions shall be described to enable users of the financial statements to understand the basis for the supplemental information.
","snippet":"In addition to the information required by this Topic, an entity may disclose supplemental information that it believes would be useful to investors and creditors, such as a range of values calculated on the basis of dif…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6d89592203baa08b1d9870c1c2945f1dc5241c9eea58719ef2c1df8e34184d5e","downloaded_from":"2026-09-10T01:03:46.036Z","last_downloaded_at":"2026-09-10T01:03:46.036Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480429","source_sha256":"7b19d5dd7985816c24a1d03643cf652d11cb7a64f3237b110fc2804e10ed90bf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15af4f044aecad20672221bab8bee5f71a98009d75ea8e9165972088a15a9454","downloaded_from":"2026-09-10T01:03:46.036Z","last_downloaded_at":"2026-09-10T01:03:46.036Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480429","source_sha256":"7b19d5dd7985816c24a1d03643cf652d11cb7a64f3237b110fc2804e10ed90bf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d26568288e8db4914af02fc33071b0f682777e28f305b8b0b14deb03647c1d8a","downloaded_from":"2026-09-10T01:03:46.036Z","last_downloaded_at":"2026-09-10T01:03:46.036Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480429","source_sha256":"7b19d5dd7985816c24a1d03643cf652d11cb7a64f3237b110fc2804e10ed90bf"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d26568288e8db4914af02fc33071b0f682777e28f305b8b0b14deb03647c1d8a","downloaded_from":"2026-09-10T01:03:46.036Z","last_downloaded_at":"2026-09-10T01:03:46.036Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480429","source_sha256":"7b19d5dd7985816c24a1d03643cf652d11cb7a64f3237b110fc2804e10ed90bf"}}