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FASB Issues Proposed Guidance for Measuring Share-Based Payments to Customers

March 6, 2019

FASB issued a proposal that would provide explicit guidance on how to measure share-based payments to a customer. The proposal (PDF) would require entities to measure and classify share-based payments to a customer by applying the guidance in FASB ASC Topic 718, Compensation — Stock Compensation. Under the proposal, share-based payments to a customer would be measured on the basis of the grant-date fair value of the share-based payment, in accordance with Topic 718. The grant date is the date when a supplier and a customer reach a mutual understanding of the key terms and conditions of a share-based payment award. Read more at the Journal of Accountancy