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Share-Based Payment Accounting Proposal Issued

Amendments have been proposed concerning share-based payment awards. The Financial Accounting Standards Board issued the proposed Accounting Standards Update, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which offers guidance on certain changes to the terms or conditions of a business’ share-based payment that require the application of modification accounting under Topic 718. A business must account for the impact of a modification, unless the fair value, vesting conditions, and classification of the award all stay the same immediately prior to and after the modification. The disclosure requirements under Topic 718 would apply regardless when a company must. Read More.

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ASU Related to Performance Targets Issued by the FASB

Due to an agreement regarding its Emerging Issues Task Force, the Financial Accounting Standards Board has released Accounting Standards Update (ASU) No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. Effective for annual and interim periods within periods starting after December 15, 2015, the ASU’s amendments require a performance target that impacts vesting and can be attained after the requisite service period be handled as a performance condition. When calculating the award’s grant-date fair value, the performance target should not be considered. The compensation. Read More.

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