Changes may be coming to the accounting for share-based payments and the equity method of accounting. The Financial Accounting Standards Board (FASB) recently released two exposure drafts that include proposed changes to Investments, Equity Method and Joint Ventures (Topic 323), and Compensation-Stock Compensation (Topic 718).
Both topics are agenda items on the FASB’s Simplification Initiative, which targets narrow scope improvements to current practice. Comments on the exposure draft, Simplifying the Equity Method of Accounting are due by August 4, 2015. Comments on the exposure draft, Improvements to Employee Share-Based Payment Accounting are due August 14, 2015.
Learn more about the proposed changes in this MHM Messenger.