United States

FAF Post-Implementation Report Addresses Share-Based Payment

Aug 25, 2014
From the Financial Reporting View

The Financial Accounting Foundation (FAF) recently issued a post-implementation review report about FASB Statement No. 123(R), Share-Based Payment (as codified in FASB ASC Topic 718, Compensation—Stock Compensation). The review team concluded that Statement 123(R) achieved its purpose and provides useful information to financial statement users. While the review team found that for public companies Statement 123(R) is generally understandable and does not result in significant ongoing costs, for private companies the standard is more difficult to understand and apply and results in significant ongoing costs.

The FASB acknowledged that these findings are consistent with feedback received from stakeholders through staff outreach related to the FASB’s Simplification Initiative and pre-agenda research for the Private Company Council (PCC). The FASB staff will continue its outreach to identify potential cost-effective solutions and will report the results to the Board and the PCC later this year.

Read FAF Press Release

Read FAF Post-Implementation Review Report

Read FASB Response to FAF Report