# ASC 718-740: Compensation—Stock Compensation — Income Taxes Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/718/740/) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:06:22.798Z to 2026-09-10T01:06:52.467Z Record version: sha256:f5b22e0fecdf3e45fd30015e2c1fcb9f42c72da30896be8ac7ef43a57588cf82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740: Compensation—Stock Compensation — Income Taxes ### Machine-generated study aids ```json { "summary": "ASC 718-740 governs the income tax accounting consequences of share-based payment arrangements, including employee stock ownership plans. Cumulative compensation cost recognized for awards that ordinarily generate a future tax deduction creates a deductible temporary difference and a deferred tax asset (718-740-25-2, 25-4), measured on book compensation cost rather than the shares' current fair value. When the actual tax deduction is finally determined (typically at exercise, expiration, or vesting), any difference between it and cumulative book compensation cost is recognized as income tax expense or benefit in the income statement (718-740-35-2).", "key_points": [ "Cumulative compensation cost recognized for equity-classified (718-740-25-2) and liability-classified (718-740-25-4) awards that ordinarily result in a future tax deduction is a deductible temporary difference under Subtopic 740-10, based on book compensation cost; capitalized compensation cost becomes part of the asset's tax basis for financial reporting.", "Awards that ordinarily do not produce tax deductions (e.g., incentive stock options) create no deductible temporary difference; tax effects of a future event such as a disqualifying disposition are recognized only when that event occurs (718-740-25-3).", "Deferred tax benefit or expense from increases or decreases in the share-based payment temporary difference (additional service rendered, forfeiture) is recognized in the income statement (718-740-30-1).", "In measuring the gross deferred tax asset and any valuation allowance, differences between the book-based deductible temporary difference and the deduction implied by current share fair value are ignored (718-740-30-2).", "The tax effect of any difference between cumulative book compensation cost and the actual tax deduction is recognized as income tax expense or benefit in the income statement in the period the deduction amount is determined—generally exercise or expiration of options or vesting of nonvested stock (718-740-35-2).", "For leveraged ESOPs, differences between fair value of shares committed to be released and their cost to the plan, or timing differences, are accounted for under Subtopic 740-10 (718-740-25-6), with the tax effect of the cost/fair value difference recognized in the income statement (718-740-45-5).", "Tax benefits of tax-deductible dividends on allocated and unallocated ESOP shares go to income taxes allocated to continuing operations (718-740-45-7), and income tax benefits from dividends charged to retained earnings on nonvested equity shares/units and outstanding share options are recognized in the income statement (718-740-45-8)." ], "categories": [ "Stock compensation", "Income taxes", "Compensation and benefits", "Presentation" ], "audience_level": "intermediate", "student_note": "Exam favorite: the DTA is built on book compensation cost, not the stock's current price, and after ASU 2016-09 all excess tax benefits and deficiencies run through income tax expense in the income statement—no more APIC pool. A common mistake is recording a DTA for incentive stock options; those get no temporary difference unless and until a disqualifying disposition occurs.", "related_topics": [ "740-10", "740-270", "718-10", "718-20", "718-30", "718-40" ], "key_concepts": [ "deductible temporary difference", "deferred tax asset", "excess tax benefit", "valuation allowance", "disqualifying disposition", "employee stock ownership plan", "dividends on share-based payment awards", "share-based payment arrangement" ] } ``` Source downloaded (UTC): 2026-09-10T01:06:22.798Z to 2026-09-10T01:06:22.798Z Record version: sha256:94189a31574b7d5d4ec3096c9a3431c21a29af7f30f10399af2697e92886ef95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/718/740/#00-status) SEC content: no ##### [718-740-00-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:22.798Z to 2026-09-10T01:06:22.798Z Record version: sha256:0c216df7d91820f5162f13f491fb4a38ffa8d148b5d74cf9297f11b419782469 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AwardAmendedAccounting Standards Update No. 2018-0706/20/2018
CarryforwardSupersededAccounting Standards Update No. 2016-0903/30/2016
Deferred Tax Expense (or Benefit)AmendedAccounting Standards Update No. 2015-0101/09/2015
EmployeeSupersededAccounting Standards Update No. 2018-0706/20/2018
Excess Tax BenefitsSupersededAccounting Standards Update No. 2016-0903/30/2016
Measurement DateSupersededAccounting Standards Update No. 2016-0903/30/2016
Share OptionAmendedAccounting Standards Update No. 2018-0706/20/2018
Temporary DifferenceAmendedAccounting Standards Update No. 2016-1610/24/2016
718-740-15-2AmendedAccounting Standards Update No. 2018-0706/20/2018
718-740-25-1AmendedAccounting Standards Update No. 2018-0706/20/2018
718-740-25-5AmendedAccounting Standards Update No. 2016-0903/30/2016
718-740-25-6AmendedAccounting Standards Update No. 2016-0903/30/2016
718-740-25-6AmendedAccounting Standards Update No. 2015-1006/12/2015
718-740-25-9SupersededAccounting Standards Update No. 2016-0903/30/2016
718-740-25-9AmendedAccounting Standards Update No. 2015-1006/12/2015
718-740-25-10SupersededAccounting Standards Update No. 2016-0903/30/2016
718-740-35-2AmendedAccounting Standards Update No. 2018-0907/16/2018
718-740-35-2AmendedAccounting Standards Update No. 2016-0903/30/2016
718-740-35-3SupersededAccounting Standards Update No. 2016-0903/30/2016
718-740-35-5 through 35-9
SupersededAccounting Standards Update No. 2016-0903/30/2016
718-740-45-1 through 45-4
SupersededAccounting Standards Update No. 2016-0903/30/2016
718-740-45-5AmendedAccounting Standards Update No. 2016-0903/30/2016
718-740-45-5AmendedAccounting Standards Update No. 2015-1006/12/2015
718-740-45-6SupersededAccounting Standards Update No. 2016-0903/30/2016
718-740-45-7AmendedAccounting Standards Update No. 2019-1212/18/2019
718-740-45-7AmendedAccounting Standards Update No. 2016-0903/30/2016
718-740-45-8AmendedAccounting Standards Update No. 2018-0706/20/2018
718-740-45-8AmendedAccounting Standards Update No. 2016-0903/30/2016
718-740-45-9 through 45-12
SupersededAccounting Standards Update No. 2016-0903/30/2016
Source downloaded (UTC): 2026-09-10T01:06:25.794Z to 2026-09-10T01:06:25.794Z Record version: sha256:70d4a1636ed8ca9342f4fcabde04ac3637e39d0fbc923b7e9cf3d4353d1c0b64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/718/740/#05-overview-and-background) SEC content: no ##### [718-740-05-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:25.794Z to 2026-09-10T01:06:25.794Z Record version: sha256:9cb3572075396507812824cb9ee62372e3062686acaf06af2f7e090f4c7576dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 740 addresses the majority of tax accounting issues and differences between the financial reporting (or book) basis and tax basis of assets and liabilities (basis differences). ##### [718-740-05-2](https://asc.understandingaccounting.org/asc/718/740/#718-740-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:25.794Z to 2026-09-10T01:06:25.794Z Record version: sha256:9fb8ba7a32cfc2cdc6f44ab159877c7a41f06bf7d0fb4e2f22103a08eb8c3800 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting for current and deferred [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") that results from [share-based payment arrangements](https://asc.understandingaccounting.org/glossary/s/#share-based-payment-arrangements "An arrangement under which either of the following conditions is met: One or more suppliers of goods or services (including employees) receive awards of equity shares, equity share options, or other equity instruments. The entity incurs liabilities to suppliers that meet either of the following conditions: The amounts are based, at least in part, on the price of the entity's shares or other equity instruments. (The phrase at least in part is used because an award may be indexed to both the price of the entity's shares and something other than either the price of the entity's shares or a market, performance, or service condition.) The awards require or may require settlement by issuance of the entity's shares. The term shares includes various forms of ownership interest that may not take the legal form of securities (for example, partnership interests), as well as other interests, including those that are liabilities in substance but not in form. Equity shares refers only to shares that are accounted for as equity. Also called share-based compensation arrangements."), including [employee stock ownership plans](https://asc.understandingaccounting.org/glossary/e/#employee-stock-ownership-plan "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."). ##### [718-740-05-3](https://asc.understandingaccounting.org/asc/718/740/#718-740-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:25.794Z to 2026-09-10T01:06:25.794Z Record version: sha256:3df04e3e9d84ccc49f49c2120537b2a4ba136bdb4b7364e7b0618a71784248a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic specifically addresses the accounting requirements that apply to the following: 1. a The determination of the basis differences which result from tax deductions arising in different amounts and in different periods from compensation cost recognized in financial statements 2. b The recognition of tax benefits when tax deductions differ from recognized compensation cost 3. c The presentation required for income tax benefits from share-based payment arrangements. ##### [718-740-05-4](https://asc.understandingaccounting.org/asc/718/740/#718-740-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:25.794Z to 2026-09-10T01:06:25.794Z Record version: sha256:b93928680fad26251913a982b5d425ca050ab1af85d5d2143fac0e14e2401f00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income tax regulations specify allowable tax deductions for instruments issued under share-based payment arrangements in determining an entity's income tax liability. For example, under tax law, allowable tax deductions may be measured as the [intrinsic value](https://asc.understandingaccounting.org/glossary/i/#intrinsic-value "The amount by which the fair value of the underlying stock exceeds the exercise price of an option. For example, an option with an exercise price of $20 on a stock whose current market price is $25 has an intrinsic value of $5. (A nonvested share may be described as an option on that share with an exercise price of zero. Thus, the fair value of a share is the same as the intrinsic value of such an option on that share.)") of an instrument on a specified date. The [time value](https://asc.understandingaccounting.org/glossary/t/#time-value "The portion of the fair value of an option that exceeds its intrinsic value. For example, a call option with an exercise price of $20 on a stock whose current market price is $25 has intrinsic value of $5. If the fair value of that option is $7, the time value of the option is $2 ($7 - $5).") component, if any, of the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale.") of an instrument generally may not be tax deductible. Therefore, tax deductions may arise in different amounts and in different periods from compensation cost recognized in financial statements. Similarly, the amount of expense reported for an employee stock ownership plan during a period may differ from the amount of the related income tax deduction prescribed by income tax rules and regulations. Source downloaded (UTC): 2026-09-10T01:06:29.217Z to 2026-09-10T01:06:29.217Z Record version: sha256:7d3edeb497b7a9dece2a6899cdc13bb175adec8860c1f33ce70080595a1802c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/718/740/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [718-740-15-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:29.217Z to 2026-09-10T01:06:29.217Z Record version: sha256:e5209840409a9df5f02053c9cf4ba8cfbdddb8cf37ae8eb339bf761ae5df251d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 718-10-15, with specific transaction qualifications noted below. #### Transactions ##### [718-740-15-2](https://asc.understandingaccounting.org/asc/718/740/#718-740-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:29.217Z to 2026-09-10T01:06:29.217Z Record version: sha256:623588417b234594837b99888a3683b027b9fcfcdd710a612fc59b068828957a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to [share-based payment transactions.](https://asc.understandingaccounting.org/glossary/s/#share-based-payment-transactions "A transaction under a share-based payment arrangement, including a transaction in which an entity acquires goods or services because related parties or other holders of economic interests in that entity awards a share-based payment to an employee or other supplier of goods or services for the entity's benefit. Also called share-based compensation transactions.") Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:053dee0142dbdc0b4be1e333fc2ca3b91aa31e958f91774c5546b1f3849554c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/718/740/#25-recognition) SEC content: no #### Determination of Temporary Differences ##### [718-740-25-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:aad81621d6b1ae31087d934b9698e9e775f1c5e9ba3661aec660da2409ff38e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses how [temporary differences](https://asc.understandingaccounting.org/glossary/t/#temporary-difference "A difference between the tax basis of an asset or liability computed pursuant to the requirements in Subtopic 740-10 for tax positions, and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively. Paragraph 740-10-25-20 cites examples of temporary differences. Some temporary differences cannot be identified with a particular asset or liability for financial reporting (see paragraphs 740-10-05-10 and 740-10-25-24740-10-25-25), but those temporary differences do meet both of the following conditions: Result from events that have been recognized in the financial statements Will result in taxable or deductible amounts in future years based on provisions of the tax law. Some events recognized in financial statements do not have tax consequences. Certain revenues are exempt from taxation and certain expenses are not deductible. Events that do not have tax consequences do not give rise to temporary differences.") are recognized for [share-based payment arrangement](https://asc.understandingaccounting.org/glossary/s/#share-based-payment-arrangements "An arrangement under which either of the following conditions is met: One or more suppliers of goods or services (including employees) receive awards of equity shares, equity share options, or other equity instruments. The entity incurs liabilities to suppliers that meet either of the following conditions: The amounts are based, at least in part, on the price of the entity's shares or other equity instruments. (The phrase at least in part is used because an award may be indexed to both the price of the entity's shares and something other than either the price of the entity's shares or a market, performance, or service condition.) The awards require or may require settlement by issuance of the entity's shares. The term shares includes various forms of ownership interest that may not take the legal form of securities (for example, partnership interests), as well as other interests, including those that are liabilities in substance but not in form. Equity shares refers only to shares that are accounted for as equity. Also called share-based compensation arrangements.") [awards](https://asc.understandingaccounting.org/glossary/a/#award "The collective noun for multiple instruments with the same terms and conditions granted at the same time either to a single grantee or to a group of grantees. An award may specify multiple vesting dates, referred to as graded vesting, and different parts of an award may have different expected terms. References to an award also apply to a portion of an award.") that are classified either as equity or as liabilities under the requirements of paragraphs [718-10-25-7 through 25-19A](https://asc.understandingaccounting.org/asc/718/10/#718-10-25-7). Incremental guidance is also provided for issues related to [employee stock ownership plans](https://asc.understandingaccounting.org/glossary/e/#employee-stock-ownership-plan "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."). ##### [718-740-25-2](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:714056cd2cac2e8ccd2829a162397c8c40649fcc644d0ad0efd464c69062b574 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cumulative amount of compensation cost recognized for instruments classified as equity that ordinarily would result in a future tax deduction under existing tax law shall be considered to be a [deductible temporary difference](https://asc.understandingaccounting.org/glossary/d/#deductible-temporary-difference "Temporary differences that result in deductible amounts in future years when the related asset or liability is recovered or settled, respectively. See Temporary Difference.") in applying the requirements of Subtopic 740-10. The deductible temporary difference shall be based on the compensation cost recognized for financial reporting purposes. Compensation cost that is capitalized as part of the cost of an asset, such as inventory, shall be considered to be part of the tax basis of that asset for financial reporting purposes. ##### [718-740-25-3](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:762ff735eb445f1933af3aeb4fa967c79c09a5d59a4a3f9dc0ffad13e79bff95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Recognition of compensation cost for instruments that ordinarily do not result in tax deductions under existing tax law shall not be considered to result in a deductible temporary difference. A future [event](https://asc.understandingaccounting.org/glossary/e/#event "A happening of consequence to an entity. The term encompasses both transactions and other events affecting an entity.") can give rise to a tax deduction for instruments that ordinarily do not result in a tax deduction. The tax effects of such an event shall be recognized only when it occurs. An example of a future event that would be recognized only when it occurs is an employee's sale of shares obtained from an award before meeting a tax law's holding period requirement, sometimes referred to as a disqualifying disposition, which results in a tax deduction not ordinarily available for such an award. ##### [718-740-25-4](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:0043ff0f8f4f24306b5ebe8bcfef5791d8e27ca5408f4cf2009257791c827ba0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cumulative amount of compensation cost recognized for instruments classified as liabilities that ordinarily would result in a future tax deduction under existing tax law also shall be considered to be a deductible temporary difference. The deductible temporary difference shall be based on the compensation cost recognized for financial reporting purposes. ##### [718-740-25-5](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:8ada9e0f3e4a091e3301baaa05db517f7b1410051d308d8034e44d88b066dba5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance addresses elements unique to an employee stock ownership plan. See Subtopic 718-40 for the non-income-tax accounting requirements and terminology applicable to employee stock ownership plans. ##### [718-740-25-6](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:bdb6ed050eaa33169b31071325acfc854af5be852b75eaf906a67b81314508be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For employers with leveraged employee stock ownership plans, the amount of employee stock ownership plan-related expense reported under the requirements of Subtopic 718-40 for a period may differ from the amount of the employee stock ownership plan-related income tax deduction (prescribed by income tax rules and regulations) for that period. Differences result in either of the following situations: 1. a The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of shares committed to be released differs from the cost of those shares to the employee stock ownership plan. 2. b The timing of expense recognition is different for income tax and financial reporting purposes. Such differences shall be reported in accordance with the requirements of Subtopic 740-10. ##### [718-740-25-7](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:bd32e5e74860d78854e75003f0a999cc391c7509ca010344786f7730e113279a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Employers with nonleveraged employee stock ownership plans may accrue compensation cost for financial reporting purposes earlier than the cost is deductible for income tax purposes. Accruing the compensation cost earlier for financial reporting purposes creates a temporary difference under the requirements of Subtopic 740-10. ##### [718-740-25-8](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:9aaafefb4ce239880d3bd4197de1e01995cdfb7613fdeec835a70e15d602d667 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 718-40-55 for several illustrations of the accounting for employee stock ownership plans, including the related income tax accounting. ##### [718-740-25-9](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:a78deff06ab31765d660f8eb87183a591ac05f9ac34871fa61c400ead632e3c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-25-10](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:33.294Z to 2026-09-10T01:06:33.294Z Record version: sha256:7098517d15b478555e07cda1f50e49a88d25e8bd7390809bc667c86977057b35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). Source downloaded (UTC): 2026-09-10T01:06:35.311Z to 2026-09-10T01:06:35.311Z Record version: sha256:e42050b6755b36b7c5f60d31f1a534859d3b61df82595ff39295ff211e920ab9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/718/740/#30-initial-measurement) SEC content: no ##### [718-740-30-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:35.311Z to 2026-09-10T01:06:35.311Z Record version: sha256:8f58f19909b8e0368934d47078d465337d4de055f68473db28c25683642adfb2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [deferred tax benefit (or expense)](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-expense-or-benefit "The change during the year in an entity's deferred tax liabilities and assets. For deferred tax liabilities and assets acquired in a purchase business combination during the year, it is the change since the combination date. Income tax expense (or benefit) for the year is allocated among continuing operations, discontinued operations, and items charged or credited directly to shareholders' equity.") that results from increases (or decreases) in the recognized share-based payment [temporary difference](https://asc.understandingaccounting.org/glossary/t/#temporary-difference "A difference between the tax basis of an asset or liability computed pursuant to the requirements in Subtopic 740-10 for tax positions, and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively. Paragraph 740-10-25-20 cites examples of temporary differences. Some temporary differences cannot be identified with a particular asset or liability for financial reporting (see paragraphs 740-10-05-10 and 740-10-25-24740-10-25-25), but those temporary differences do meet both of the following conditions: Result from events that have been recognized in the financial statements Will result in taxable or deductible amounts in future years based on provisions of the tax law. Some events recognized in financial statements do not have tax consequences. Certain revenues are exempt from taxation and certain expenses are not deductible. Events that do not have tax consequences do not give rise to temporary differences."), for example, an increase that results as additional service is rendered and the related cost is recognized or a decrease that results from forfeiture of an [award](https://asc.understandingaccounting.org/glossary/a/#award "The collective noun for multiple instruments with the same terms and conditions granted at the same time either to a single grantee or to a group of grantees. An award may specify multiple vesting dates, referred to as graded vesting, and different parts of an award may have different expected terms. References to an award also apply to a portion of an award."), shall be recognized in the income statement. ##### [718-740-30-2](https://asc.understandingaccounting.org/asc/718/740/#718-740-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:35.311Z to 2026-09-10T01:06:35.311Z Record version: sha256:2022e6aa9eb17878d6f4573efbc648293449aa1d2476c89e25fd23c2547a1120 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 740-10 requires a [deferred tax asset](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") to be evaluated for future realization and to be reduced by a [valuation allowance](https://asc.understandingaccounting.org/glossary/v/#valuation-allowance "The portion of a deferred tax asset for which it is more likely than not that a tax benefit will not be realized.") if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Differences between the [deductible temporary difference](https://asc.understandingaccounting.org/glossary/d/#deductible-temporary-difference "Temporary differences that result in deductible amounts in future years when the related asset or liability is recovered or settled, respectively. See Temporary Difference.") computed pursuant to paragraphs [718-740-25-2 through 25-3](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-2) and the tax deduction that would result based on the current [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale.") of the entity's shares shall not be considered in measuring the gross deferred tax asset or determining the need for a valuation allowance for a deferred tax asset recognized under these requirements. Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:0cb333ef4afc280726d4b78864ed176b1c6ee7a6bd12e99dd5f9a007b1fa71d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/718/740/#35-subsequent-measurement) SEC content: no ##### [718-740-35-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:75069941189eeb12c472a930a5a983f8b1085e206cbc9566d431d315dfc26b74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 718-740-30 addresses initial measurement issues related to share-based payment [temporary differences](https://asc.understandingaccounting.org/glossary/t/#temporary-difference "A difference between the tax basis of an asset or liability computed pursuant to the requirements in Subtopic 740-10 for tax positions, and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively. Paragraph 740-10-25-20 cites examples of temporary differences. Some temporary differences cannot be identified with a particular asset or liability for financial reporting (see paragraphs 740-10-05-10 and 740-10-25-24740-10-25-25), but those temporary differences do meet both of the following conditions: Result from events that have been recognized in the financial statements Will result in taxable or deductible amounts in future years based on provisions of the tax law. Some events recognized in financial statements do not have tax consequences. Certain revenues are exempt from taxation and certain expenses are not deductible. Events that do not have tax consequences do not give rise to temporary differences."). The requirements of that Section also apply to subsequent measurements of share-based payment temporary differences. The guidance in this Section is incremental to the guidance for initial measurement. #### Treatment of Tax Consequences When Actual Deductions Differ from Recognized Compensation Cost ##### [718-740-35-2](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:421ee5ce8ccaf32f00503d9f127d4f99f309d2f685865f87b988a57ae59aee2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section addresses the accounting required in a period when the deduction for compensation expense to be recognized in a tax return for [share-based payment arrangements](https://asc.understandingaccounting.org/glossary/s/#share-based-payment-arrangements "An arrangement under which either of the following conditions is met: One or more suppliers of goods or services (including employees) receive awards of equity shares, equity share options, or other equity instruments. The entity incurs liabilities to suppliers that meet either of the following conditions: The amounts are based, at least in part, on the price of the entity's shares or other equity instruments. (The phrase at least in part is used because an award may be indexed to both the price of the entity's shares and something other than either the price of the entity's shares or a market, performance, or service condition.) The awards require or may require settlement by issuance of the entity's shares. The term shares includes various forms of ownership interest that may not take the legal form of securities (for example, partnership interests), as well as other interests, including those that are liabilities in substance but not in form. Equity shares refers only to shares that are accounted for as equity. Also called share-based compensation arrangements.") differs in amounts and timing from the compensation cost recorded in the financial statements. The tax effect of the difference, if any, between the cumulative compensation cost of an [award](https://asc.understandingaccounting.org/glossary/a/#award "The collective noun for multiple instruments with the same terms and conditions granted at the same time either to a single grantee or to a group of grantees. An award may specify multiple vesting dates, referred to as graded vesting, and different parts of an award may have different expected terms. References to an award also apply to a portion of an award.") recognized for financial reporting purposes and the deduction for an award for tax purposes shall be recognized as income tax expense or benefit in the income statement. The tax effect shall be recognized in the income statement in the period in which the amount of the deduction is determined, which typically is when an award is exercised or expires, in the case of share options, or vests, in the case of nonvested stock awards. The appropriate period depends on the type of award and the incremental guidance under the requirements of Subtopic 740-270 on income taxes—interim reporting. ##### [718-740-35-3](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:8e508c310a03a1078c71b522f7662d20c4e44b17c1bfe3fdc5386a06d58c0051 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-35-4](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:746417e559b0b643a175765d9f77f3986014612f173b52712ea12aac02d82e05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Examples 1, Case A (paragraph [718-20-55-10](https://asc.understandingaccounting.org/asc/718/20/#718-20-55-10)); 8 (paragraph [718-20-55-71](https://asc.understandingaccounting.org/asc/718/20/#718-20-55-71)); 15, Case A (paragraph [718-20-55-123](https://asc.understandingaccounting.org/asc/718/20/#718-20-55-123)); and Example 1 (paragraph [718-30-55-1](https://asc.understandingaccounting.org/asc/718/30/#718-30-55-1)), which provide illustrations of accounting for the income tax effects of various awards. ##### [718-740-35-5](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:781f25b2b6edd8508d4a40f7bf36d6df3bc6de37ac538da6d3d1e23a9db270f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-35-6](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:e497653028977bb11eac2955987340879ec5fd6eccb160c177e107834d274f78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-35-7](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:c8f6a02e4f02209adf40e69d73df21a6cdda927c8c99abaa50ad32c1b34fd702 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-35-8](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:9c9eda14b78767f7eeeab68aa41b927cb61937b219ec88241fc7d4c93c7e92a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-35-9](https://asc.understandingaccounting.org/asc/718/740/#718-740-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:37.865Z to 2026-09-10T01:06:37.865Z Record version: sha256:7075149d8a0ffa7f58230b3c679ddc00b532e6bc81312460f7afad9fc4d9a302 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:0a99b9fd7c1ff840940054f8534c495936f2d86f8ff0ecce29783c703f01d7df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/718/740/#45-other-presentation-matters) SEC content: no ##### [718-740-45-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:2a8665f47cc819589248f5aba4eb40262856b52c919b7285cec6e9678a907390 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-45-2](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:819212d346157975b16e388e0654f240bbb89dee9a9189a5eecd9d94411606e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-45-3](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:5dc7c4e53303e11f8dfabb6b6cd13799d414addac57f046e534d5ff4d9e942bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-45-4](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:b9596a314fddf85a19995611facabfd3d7a90d5be9766be9e782fd0d34a7b17d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). #### Employee Stock Ownership Plans ##### [718-740-45-5](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:eca51840c6039501af6e5ac4f3cbc231a4c7926ec558826e48fed92e1974d7bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax effect of the difference, if any, between the cost of shares committed to be released and the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the shares shall be recognized as income tax expense or benefit in the income statement. ##### [718-740-45-6](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:4e6b61502849490b29f7bff4a1943bcfdce166e4440ce182404300b595d67cc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-45-7](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:ea917d66c5a830945d266c9ea1ae775bf76a938448e375fda9e7a797e97d9f60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax benefit of tax-deductible dividends on allocated and unallocated [employee stock ownership plan](https://asc.understandingaccounting.org/glossary/e/#employee-stock-ownership-plan "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.") shares shall be recognized in income taxes allocated to continuing operations. #### Tax Benefits of Dividends on Share-Based Payment Awards to Employees ##### [718-740-45-8](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:e123fc5d3c69bcbca0ffa582b03d9481f3bedfdc588bf9be9fed7035269b2360 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An income tax benefit from dividends or dividend equivalents that are charged to retained earnings and are paid to grantees for any of the following equity classified awards shall be recognized as income tax expense or benefit in the income statement: 1. a Nonvested equity shares 2. b Nonvested equity share units 3. c Outstanding equity share options. ##### [718-740-45-9](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:84de6f2b3ddf28d523d89095dfe54d582268886bde1ecfc58560151e40569020 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-45-10](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:0d920373666262de8ffd0902178c74a5f77c22267107f0a444eb58cec942653b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-45-11](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:92041177e0bab344afe55f3edbe4d0e759e43840f8951707eb69d5e0e5f072ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). ##### [718-740-45-12](https://asc.understandingaccounting.org/asc/718/740/#718-740-45-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:40.440Z to 2026-09-10T01:06:40.440Z Record version: sha256:92b88f9fc3d1eea8af97695e1f549a74fb7ea1cd0f351025502405fcc075290e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-09](https://asc.understandingaccounting.org/updates/asu-2016-09/). Source downloaded (UTC): 2026-09-10T01:06:44.274Z to 2026-09-10T01:06:44.274Z Record version: sha256:8219317d170807911d35f4318c525ae27c08f419a36b29eb4c6998b52f005d93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/718/740/#50-disclosure) SEC content: no ##### [718-740-50-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:44.274Z to 2026-09-10T01:06:44.274Z Record version: sha256:705cb04b08816da9b7e4b1bfcca71a82a682f487d6252fe78c4cebbb8724dd51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T01:06:45.999Z to 2026-09-10T01:06:45.999Z Record version: sha256:3367c53bdc854573a23f3be605ada8fdfaeaf193e5d14e761573e76aaf919ff7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/718/740/#65-transition-and-open-effective-date-information) SEC content: no ##### [718-740-65-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:45.999Z to 2026-09-10T01:06:45.999Z Record version: sha256:a58dc8bfd9a9ec0dd768cf53fa8a549d6154d4c6c6780afd024d3864369dc309 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 03/23/2010 after the end of the transition period stated in EITF Issue No. 06-11, "Accounting for Income Tax Benefits of Dividends on Share-Based Payment Awards." Source downloaded (UTC): 2026-09-10T01:06:52.467Z to 2026-09-10T01:06:52.467Z Record version: sha256:2852facc2f2c8e6797e6083f81ead230c6b95db704aa4770b74bc5fe82487160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 718-740-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/718/740/#sec-55-implementation-guidance-and-illustrations) SEC content: yes #### Accounting for Income Tax Effects of Share-Based Payment Arrangements Upon Adoption of Topic 718 ##### [718-740-S55-1](https://asc.understandingaccounting.org/asc/718/740/#718-740-S55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:06:52.467Z to 2026-09-10T01:06:52.467Z Record version: sha256:80c776d1ef463a925541673bac8231fdff6c0e6eab4c8916f91eec228f9f5e9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [718-10-S99-1](https://asc.understandingaccounting.org/asc/718/10/#718-10-S99-1), SAB Topic 14.J, for SEC Staff views on accounting for the income tax effects of share-based payment arrangements upon adoption of Topic 718.