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FASB proposes improvements to share-based payment accounting

  • FASB document Image

Jun 08, 2015

The FASB has issued a proposed Accounting Standards Update (ASU), “Improvements to Employee Share-Based Payment Accounting,” as part of its simplification initiative (i.e., the Board’s effort to reduce the cost and complexity of certain aspects of U.S. GAAP).

The pro­posed ASU would amend the following aspects of the accounting for share-based payment transactions:

  • Income taxes.
  • Classification of excess tax benefits in the statement of cash flows.
  • Forfeitures.
  • Minimum statutory tax withholding requirements.
  • Classification of employee taxes paid in the statement of cash flows when an employer withholds shares for tax withholding purposes.
  • Classification of awards with repurchase features.
  • Practical expedient (expected term).
  • Intrinsic value.

In addition, the proposal would eliminate the indefinite deferral from ASC 718.

Com­ments on the pro­posed ASU are due by August 14, 2015. For more in­for­ma­tion, see Deloitte's related Heads Up as well as the proposed ASU on the FASB’s Web site.

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