Financial Reporting Alert 21-4: SEC Issues Staff Accounting Bulletin on “Spring-Loaded” Awards

Published on: Dec 03, 2021

On November 29, 2021, the SEC issued Staff Accounting Bulletin (SAB) No. 120. Under SAB 120, an entity that grants a share-based payment award while in possession of positive material nonpublic information should consider whether adjustments to the following are appropriate when determining the fair-value-based measure of the award: (1) the current price of the underlying share or (2) the expected volatility of the price of the underlying share for the expected term of the share-based payment award.


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