{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/718/40/#15-scope-and-scope-exceptions","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":"718-40","subtopic_title":"Employee Stock Ownership Plans","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"718-40-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-2EB00FE1-A48C-46AB-A03B-95285C415155.ditamap\" class=\"ditamap\">718-10-15</a>, with specific qualifications noted below.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 718-10-15, with specific qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:abc5a1b26cd0344f7d64d1b7a8b9e1c52053f78b7e6f4aab4f21e835adcc59c6","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7cce5bf18ad986b03709e4e452636441a610b900d981438c249e53067e3a73f","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"718-40-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_CDE7B87F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in this Subtopic applies to all employers with <a href=\"/glossary/e/#employee-stock-ownership-plan\" class=\"term\" title=\"An employee stock ownership plan is an employee benefit plan that is described by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 as a stock bonus plan, or combination stock bonus and money purchase pension plan, designed to invest primarily in employer stock. Also called an employee share ownership plan.\"><span>employee stock ownership plans</span></a>, both leveraged and nonleveraged. </span></span></div></div>","snippet":"The guidance in this Subtopic applies to all employers with employee stock ownership plans, both leveraged and nonleveraged.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72ec5f19072255db3dedcb56375f04d8598375046fccae873f68357e2eb5b477","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8e4a57f02061332e6ccd3f7ae22f235c2a9f9045d4c1353ec1d9ef62658f2f5","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"718-40-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_CDE7B99F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic provides guidance on an employer's accounting for employee stock ownership plans. </span></span><span class=\"sfragment\" id=\"sfr_CDE7BA79-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">There are two basic forms of employee stock ownership plan: leveraged and nonleveraged. This Subtopic addresses the financial reporting for each separately. </span></span></div></div>","snippet":"This Subtopic provides guidance on an employer's accounting for employee stock ownership plans. There are two basic forms of employee stock ownership plan: leveraged and nonleveraged. This Subtopic addresses the financia…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1b2d7a6b739a6eb51a27fccd4ca271b4dd0815e4f9fb316ede2ce9a265c8070","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1ccc280672da6aaedb246095f8760a71504b3bfeb2dafd121ba9174d31ace0d","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"718-40-15-4","para":"15-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">The guidance in this Subtopic does not address the following:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_CDE7BB43-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Financial reporting by employee stock ownership plans. </span></span></div></li></ol></div></div>","snippet":"The guidance in this Subtopic does not address the following:\n(a) Financial reporting by employee stock ownership plans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc381b8b6bb0e81e07aa00f769258bde9c5ad6474692a2b81ca7b9bb805f091d","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:966a3c97514c4a233da7af548ea842af249ecd5cbc6cb49d9ae52062b0c7cb8e","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}},{"block":"Leveraged Employee Stock Ownership Plans","heading":"Overall Guidance","paragraphs":[{"citation":"718-40-15-5","para":"15-5","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Leveraged Employee Stock Ownership Plans Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph <a href=\"/asc/718/40/#718-40-15-1\" class=\"xref\">718-40-15-1</a>.</div></div>","snippet":"The Leveraged Employee Stock Ownership Plans Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph 718-40-15-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00532e482d6913984a43656b636a3dff8be7bb2afd0d1c4b6ed1f088072df0e5","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d5e70c27234311c8a793a57679dbefe9d3cf24d331eeabf04eb5cb376622e04f","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}},{"block":"Nonleveraged Employee Stock Ownership Plans","heading":"Overall Guidance","paragraphs":[{"citation":"718-40-15-6","para":"15-6","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Nonleveraged Employee Stock Ownership Plans Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph <a href=\"/asc/718/40/#718-40-15-1\" class=\"xref\">718-40-15-1</a>.</div></div>","snippet":"The Nonleveraged Employee Stock Ownership Plans Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph 718-40-15-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03c1305f90f73ab2f4bfdc4c2682450e40025e2cb24ca071fd6483e52cfbb712","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e92d893a81639170797b97cb107fbbe1adb5d5c604d79f35359875a83573a75","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9cd9c7c2882e21316baa3c509b579dd2514977a270ac54229b88ff4939402802","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9cd9c7c2882e21316baa3c509b579dd2514977a270ac54229b88ff4939402802","downloaded_from":"2026-09-10T01:05:25.249Z","last_downloaded_at":"2026-09-10T01:05:25.249Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480698","source_sha256":"4b810dafec3335eec944c738b64aac4ca9367e31030f0fed54767a27d98deb8f"}}