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FASB proposes improvements to nonemployee share-based payment accounting

  • FASB document Image

Mar 07, 2017

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

The proposed ASU will expand the scope of ASC 718, Stock Compensation, to include payments for goods and services to nonemployees. The objective of the proposal is to improve the following aspects of nonemployee share-based payment accounting:

  • Overall measurement objective.
  • Measurement date.
  • Awards with performance conditions.
  • Classification reassessment of certain equity-classified awards.
  • Practical expedient — calculated value.
  • Intrinsic value.

Comments on the proposed ASU are due by June 5, 2017. For more information, see Deloitte's Heads Up newsletter as well as the press release, FASB in Focus newsletter, and proposed ASU on the FASB’s Web site.

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