The amount (fair value) for which an equity instrument granted is exchanged between well-informed, willing parties (e.g., issuer-grantee) in an exchange-like, arm’s length transaction at the measurement date. This may involve transactions with employees and others providing similar services (in which case, the measurement date converges with the grant date). For transactions with parties other than employees (and those providing similar services), the measurement date marks the date an issuer/ grantor obtains the goods or the counterparty provides service.

The grant date is the date at which an issuer and another party (including an employee) enter to a share-based payment arrangement, whereby the former confers on the other the right to receive cash, other assets, or equity instruments, upon meeting a host of vesting conditions.