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Executive Summary

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.


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