The Financial Accounting Standards Board (FASB) recently released Accounting Standards Update (ASU) No. 2016-09, which finalises significant changes aimed at simplifying the accounting for share-based payments. Taxand USA discusses changes and clarifications in the final rules as well as key items that companies should consider before the final rules become effective.
The final rules are effective for annual periods beginning after 15 December 2016 for public companies and after 15 December 2017 for all other entities. Early adoption is permitted, but if a company chooses to early adopt, it must do so for all amendments in ASU 2016-09.
Changes to Proposed Rules:
Discover more: New accounting rules for stock-based compensation
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Companies need to consider whether early adoption is in their best interest and need to be sure the proper controls are in place to ensure quality reporting.
