FASB Makes Progress on Stock Compensation Standard
After reviewing feedback on its proposed changes to stock compensation accounting, the Financial Accounting Standards Board (“FASB”) agreed that companies must apply the modification accounting under Topic 718 if an alteration to an award impacts the fair value (or assessed value or intrinsic value, if a different measurement technique is used), vesting conditions, or the award classification. The FASB said Wednesday that the proposed Accounting Standards Update (“ASU”), Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, should exclude guidance that allows an entity to decide whether a modification to an award’s fair value is insignificant. In addition, the unit of. Read More.