This content was published prior to the merger of equals between BKD and DHG on June 1, 2022. See all FORsights for the most up-to-date articles, webinars, and videos.
Simplified Accounting for Nonemployee Share-Based Payments
The Financial Accounting Standards Board recently wrapped up a simplification project that substantially aligns employee and nonemployee share-based payment accounting. The changes will eliminate the need for a separate process for granting and tracking awards to nonemployees and employees and should reduce income statement volatility. The Accounting Standards Update also provides additional relief to private companies. Under the new guidance, share-based payments for employees and nonemployees will be measured at grant-date fair value on the date of the stock payment. The amendments are not expected to result in practice changes for employee share-based payment awards.