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On The Horizon: FASB’s proposal addresses share-based payments to customers

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On the Horizon newsletter Contents FASB

ASU proposed on measuring and classifying share-based payments to customers
Feb. 27 meeting highlights posted

SEC amends timing requirements for filing reports on Form N-Port AICPA updates Audit and Accounting Guide on revenue GASB solicits comments on proposed Implementation Guide IAASB releases Consultation Paper on extended external reporting

FASB ASU proposed on measuring and classifying share-based payments to customers The FASB issued a proposed ASU, Codification Improvements – Share-Based Consideration Payable to a Customer, which would require entities to measure and classify share-based payments to a customer by applying the guidance in ASC 718, Compensation – Stock Compensation. As a result, entities would measure the amount of share-based compensation recorded as a reduction of revenue based on the grant-date fair value of the share-based payment under ASC 718. Entities would also apply the classification and subsequent measurement guidance in ASC 718 to the share-based payment, unless this payment is subsequently modified and the grantee is no longer a customer.

Feb. 27 meeting highlights posted The FASB met on Feb. 27 to (1) discuss comments received on proposed amendments to the financial instruments guidance, (2) redeliberate proposals on disclosing income taxes and government assistance, and (3) consider the definition of a liability.

SEC amends timing requirements for filing reports on Form N-Port On Feb. 27, the SEC issued an Interim Final Rule, Amendments to the Timing Requirements for Filing Reports on Form N-PORT. Among other things, the amendments change the filing deadline of Form N-PORT for each month in a fiscal quarter to no later than 60 days after the end of that fiscal quarter.

The Interim Final Rule is effective upon publication in the Federal Register.

AICPA updates Audit and Accounting Guide on revenue The AICPA issued a new version of the Audit and Accounting Guide, Revenue Recognition, updated as of Feb. 1, which includes guidance issued through ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606.

GASB solicits comments on proposed Implementation Guide The Governmental Accounting Standards Board (GASB) has issued a proposed Implementation Guide related to the GASB’s new accounting and financial reporting guidance on leases. Comments are due by April 30.

IAASB releases Consultation Paper on extended external reporting The International Federation of Accountants’ International Auditing and Assurance Standards Board (IAASB) released its Consultation Paper, “Extended External Reporting Assurance,” as part of its Extended External Reporting (EER) project. The IAASB is seeking feedback in order to develop a non-authoritative guidance document, which will be published during the second phase of the project.

The Consultation Paper includes draft guidance on the following topics:

  • Suitability of criteria used to prepare the EER report
  • Entity-developed criteria to determine the matters reported on
  • Types of misstatements that may occur in the EER report
  • Materiality of misstatements in the EER report
  • The entity’s governance and internal control over its process to prepare the EER report
  • Narrative and future-oriented information in the EER report

Comments are due by June 21.



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This Grant Thornton LLP On the Horizon provides information and comments on current accounting and SEC reporting issues and developments. It is not a comprehensive analysis of the subject matter covered and is not intended to provide accounting or other advice or guidance with respect to the matters addressed in this publication. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this publication. For additional information on topics covered in this publication, contact a Grant Thornton client-service partner.