In 2016, the FASB issued Accounting Standard Update (‘ASU’) 2016-09, Improvements to Employee
Share-Based Payment Accounting, which makes a number of changes meant to simplify and improve
accounting for share-based payments. One of the most significant changes relates to accounting for tax
deductions associated with stock compensation, and will now result in all tax benefits being reflected in
corporate earnings. This article examines what companies will need to consider in applying these changes.