FASB Guidance: Grant Date, Tax Accounting, and Market Valuations

The FASB proposed new Staff Positions on determining the grant date of a share-based payment and on a simplified transition method for computing the available excess tax benefits in additional paid-in capital at the time Statement 123R is adopted, 1 and the SEC’s economists reported their analysis of using market instruments to value employee stock options.2 This edition of Defining Issues summarizes the new guidance.