Section 3870 - Stock-based compensation and other stock-based payments
Effective date: |
January 1, 2011 |
Published by the AcSB: |
December 2009 |
Reach out to our Section 3870 Specialist |
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Overview
This Section establishes standards for the recognition, measurement and disclosure of stock-based compensation and other stock-based payments made in exchange for goods and services. It applies to transactions, including non-reciprocal transactions, in which an enterprise grants shares of common stock, stock options, or other equity instruments, or incurs liabilities based on the price of common stock or other equity instruments. These transactions may involve the enterprise's own equity instruments, those of a parent or subsidiary, those of a subsidiary of the same parent, or those of an equity-accounted affiliate of one of the above. This Section sets out a fair value based method of accounting and is required for all stock-based payments.
This Section permits a private enterprise to use an industry index to estimate volatility but does not permit it to use the minimum value method.
History of Section 3870
Date |
Development |
Comments |
December 2009 |
Part II of the CPA Canada Handbook issued |
Effective for fiscal years beginning on or after January 1, 2011. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.