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4.13 Share-based payments
Publication date: 31 May 2022
us Foreign currency guide
The accounting treatment of foreign currency denominated share-based payments depends on the terms of the payments, as well as the entity’s specific facts and circumstances. Foreign currency denominated share-based payments are generally accounted for as liabilities unless they meet the requirements in ASC 718-10-25-14, which allow equity awards granted to employees to be classified as equity provided the exercise price is denominated in either (1) the functional currency of the foreign operation, (2) the currency in which the employee is paid, or (3) the currency of a market in which a substantial portion of the entity’s equity securities trades.
See SC 3.3.8 for further information on share-based payments with an exercise price denominated in a foreign currency.
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