Proposal for Nonemployee Share-Based Payments Issued
The Financial Accounting Standards Board (“FASB”) issued for public comment the proposed Accounting Standards Update (“ASU”), Compensation— Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The proposal is aimed to lower costs and confusion over financial reporting for non-employee share-based payments. If approved, the scope of Topic 718, Compensation—Stock Compensation, would be expanded to include payments to non-employees. In addition, standard would replace Subtopic 505-50, Equity—Equity Based Payments to Non-Employees.
Comments are due Monday, June 5. An effective date for the proposed ASU will be decided after the FASB reviews all submitted feedback.