New Employee Share-Based Payment Accounting Guidance Issued
An Accounting Standards Update (“ASU”) has been issued by the Financial Accounting Standards Board (“FASB”) impacting organizations that distribute share-based payment awards. ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, simplifies certain components of the accounting for share-based payments such as income tax consequences, the classification of awards as either equity or liabilities, and the classification regarding cash flow statements. For public companies, the amendments in ASU No. 2016-09 are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Private companies must apply the amendments to annual periods. Read More.
FASB Adds Nonprofit Consolidation Reporting and Nonemployee Share-Based Compensation Projects
As a result of its December 16th meeting, the Financial Accounting Standards Board (“FASB”) has added the following two projects to its standard-setting agenda: Nonprofit consolidation reporting. The FASB will propose guidance clarifying when a nonprofit group serving as a general partner should report the holdings of a for-profit limited partnership on its balance sheets. Some nonprofits previously said that the guidance was not clear in Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. Nonemployee share-based compensation. Subtopic 505-50, Equity—Equity Based Payments to Non-Employees, addresses some of the accounting for nonemployee share-based payments, but the. Read More.