The reporting of stock-based compensation split over various expense categories in the income statement is inconsistent across a number of filings. The taxonomy provides a table that allows a filer to dimensionally qualify the stock-based compensation between the following members:
- Cost of Sales
- Research and Development
- Selling and Marketing
- General and Administrative
However, in practice filers have used the following approaches:
- Approach 1 – Used the equivalent expense items to the members as the line item GeneralAndAdministrativeExpense and dimensionally qualified it by using a taxonomy element such as StockBasedCompensationPlanMember shown in Figure 17 or an extension member like StockBasedCompensationMember.
- Approach 2 – Used either AllocatedShareBasedCompensationExpense or ShareBasedCompensation items and qualified them by members that represent the income statement categories.
- Approach 3 – Created extension items to represent the different categorizations.
The intention of the FASB is that Approach 2 should be used.
Use Approach 2 and dimensionally qualify the stock-based compensation line item between the following members:
- Cost of Sales (CostOfSalesMember)
- Research and Development (ResearchAndDevelopmentExpenseMember)
- Selling and Marketing (SellingAndMarketingExpenseMember)
- Restructuring (RestructuringChargesMember)
- General and Administrative (GeneralAndAdministrativeExpenseMember)