718 Dsivlgcplzip May 2026

: Companies must "expense options," meaning they record the value of the equity granted as an expense on their income statement over the period the recipient provides the service (the vesting period). Scope and Applicability

: 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 718 dsivlgcplzip

: 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. : Companies must "expense options," meaning they record