This article explains how companies can elect to account for compensation that is not deductible under Section 162(m) and covers the processes needed to properly recognize DTAs for nondeductible stock awards.
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.
On March 30, 2016, the FASB issued Accounting Standards Update 2016-09, which finalizes the FASB's updates to simplify the operation of ASC 718, including changes to the accounting treatment of the tax effects of stock compensation, forfeitures, and share withholding.
This article summarizes how ASU 2016-09 amends ASC 718, including changes to tax accounting procedures, application of estimated forfeiture rates, and the treatment of share withholding.
This article provides a handy table that compares the guidance in ASU 2016-09 to prior US GAAP and includes KPMG's observations on the new guidance.
As part of its effort to reduce the cost and complexity of accounting for share-based payments (stock options, restricted stock, performance shares, etc.), the Financial Accounting Standards Board recently issued Accounting Standards Update (ASU) 2016-09. This article discusses some of the positive and negative outcomes of the new rules.
On December 16, 2004, the FASB released its new accounting standard for stock-based compensation. This standard supersedes APB Opinion No. 25, requiring companies to recognize an expense for all forms of stock-based compensation.